My seller and buyer conducted an inventory last night prior to our closing today and in large part it was a text book case of how to prepare for and conduct an inventory.
The seller had prepared a spreadsheet of all items with the costs from his vendors. Buyer and seller went through each item and agreed on the quantity. Obviously full cases were easy. It came down to a judgment call on partial cases, but they were generally in agreement. A third person entered the quantity and the spreadsheet was already set up to provide a total.
The seller put a label on each item to indicate it had been inventoried.
While it took almost three hours it is a necessary part of the sale of a business. A seller indicates an estimate of the inventory at the time the business is listed for sale, but the exact amount varies day by day.
After the final tally is taken both seller and buyer sign and date a form agreeing to the value and that is forwarded to the closing attorney.
