Diligence Deep Dive: Why Inventory Can Make or Break Your Acquisition

This is one of the most comprehensive articles you’ll read on inventory in M&A. This month's AWG Brief newsletter goes beyond the balance sheet to explain how inventory treatment determines the real purchase price of a business. Before you close your next deal, you need to understand the risks. We cover critical diligence points: • "Off-balance-sheet" inventory claims and their impact on profit. • The aging trap, obsolescence reserves, and costing methods. • Setting a proper Net Working Capital peg to avoid post-close cash drains. • How inventory days directly affect your DSCR and leverage capacity. You’ll learn what to watch for and how to spot the inventory risks that could undermine your deal. The full article is a must-read if you are considering a business with inventory. Link to the full article: https://www.linkedin.com/pulse/diligence-deep-dive-why-inventory-can-make-break-your-goran-pavlovski-tbaqe