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Selling a business, How to price inventory?
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redhunter
Posted 5/15/2014 22:00 (#3872696)
Subject: Selling a business, How to price inventory?



Owensville, MO
My wife owns a small business with a partner that they have operated for almost 5 years. My wife has decided she wants out to spend more time with the family. Her partner has agreed to buy her half and they are trying to agree on a price. Everything has been settled except what value should be put on the inventory. Mostly cosmetics and beauty products. We argue that inventory should be valued at replacement cost for the business, or, what they paid for it. Partner has a financial adviser that is telling her that inventory must be priced at liquidation prices or 10-15% of cost. I understand that everything is negotiable, but are we out of line here? We are not liquidating a business, just selling our interest to a partner. Just looking for opinions. Thanks guys

Joe
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