Give inventory a clear story
Separate regular stock from slow movers, custom packaging and obsolete lines. An inventory count is more useful when its valuation method and included items are agreed.
A warehouse full of stock can tie up cash without producing equivalent earnings. Identify which items customers actually reorder.
Review the customer and supplier mix
Show revenue and margin by customer group. Explain whether customers buy because of availability, custom specifications, purchasing terms or your own personal relationships.
Prepare supplier terms and note any rebates, exclusivity or minimum purchases. A buyer should not assume those terms survive a change of ownership.
Price the operating business and the cash need
Reconcile gross margin and owner adjustments before discussing a valuation range. Equipment and inventory should be described consistently with the proposed deal structure.
Working capital can be material in a distribution sale. Agree which receivables, payables and stock levels remain with each side rather than leaving them for closing day.