It is always a challenge to buy a business with high levels of inventory that exceeds normalized operations. In doing so you will have substantial capital tied up in inventory, and it can be hard to make the business cash flow with the additional debt burden. One thing we have seen clients do when there is excess inventory is to take that inventory on consignment. In essence you have possession of that inventory to sell it, but technically the seller still owns it. As you work through the inventory you pay the seller for that inventory. Typically you would pay them based on the original cost for that inventory. This also prevents the risk of you acquiring stale inventory that does not turn over quickly or might never turn over.

Happy to get on a call to discuss how this works. You can reach me here or directly at redacted Good luck.

Thanks Brad. That sounds like a very sensible plan that I could be comfortable with. This business has a LOT of SKUs, and I don't have granular data on the nature of which ones are in inventory. Seems like this would resolve that well. Thank you.