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Should I include stock in the sale of my business, or should I run the stock level down?

One of the most common questions we receive in the business sales process revolves around stock.

Many sellers tend to believe that by running the stock levels down it will make for a simpler and more cost effective transaction from their buyers come settlement day. In reality, low stock levels can create panic in a business transition phase.

The last thing either customers or a new owner are wanting to see is empty shelves. This gives the impression of a business that is suffering. At the same time, low stock levels make it difficult to make money in the opening week of business.

The best advice we can give is to ensure you take over a business with the shelves full of stock. You will have a lot of work to do in your first week of business ownership. Time will be poor, and stress will be high. If we can remove the problem of having to order large quantities of stock in this process the transition will be far simpler.

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Related Tag: Sell Your Business

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