E-commerce · Deal Structure
Inventory treatment at closing
Published · Reviewed by The Diligence Standard Team · Updated
Inventory price, ownership, count, condition and obsolescence should be defined before the physical or platform count.
Records to reconcile
- SKU quantity and cost
- Aging and condition rules
- Title and location evidence
Warning signal
All inventory receives full landed cost regardless of age, restrictions or sell-through.
Transaction impact
The buyer may overpay and still need replacement working capital.
Response
Agree valuation rules and exception treatment before closing.