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what is the value of the inventory when purchasing a business (shoe store)?

Do we pay the seller the full price of the shoe inventory( what he paid at the time) or if some of it is new &
some older inventory-should it be priced at a discount? If yes how/based on what we figure the discount

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Answers (2)
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MainStreet M&A
Nassau County, NY

I am a NY Tri-state area business broker/consultant and my fellow broker Steve in San Diego, CA hit it right on the head. One should pay the seller for his cost of the Inventory. Outdated products should be discounted, that is fair for both seller and buyer. Just make sure there is no inventory on consignment.
Good Luck with your new business

Mar 14, 2011
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Sharp Business Opportunities
San Diego County, CA

You would usually pay the same price they paid. If the inventory is old, the seller might be willing to negotiate. It is really between you and the seller to determine what is fair on older inventory. The seller knows what inventory won't move and should be willing to work with you rather than killing the deal. You might even ask for 90 day terms on some dead inventory rather than tying up working capital.

Mar 14, 2011

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