Reporting a lower inventory to their accountant is something many business owners have been doing for a long time. And many accountants just accept the number. In addition to the obvious concerns, when it comes to selling the business, big problems can arise.
How will the inventory be valued in the Purchase Allocations? And who is going to have to pay the various taxes on the larger amount?
Business owners should give their accountants an accurate inventory value each year to avoid troubles at the closing table!
I help business owners exit on their terms, not by chance. As the founder of Transworld Business Advisors of Alaska and Greater Seattle, I guide entrepreneurs through confidential business sales, mergers, and franchise growth.
I’ve built, bought, and sold companies myself, so I know the grind, the risk, and the reward. For over 30 years, I’ve helped owners uncover what their business is truly worth, and what comes next.
Every business has a story. Mine is to make sure yours ends well, with purpose, pride, and the freedom to choose what’s next.
