Search Fund Inventory E&O Reserve Solver

Underwrite auditing historical inventory aging reports to identify slow-moving SKU velocity (>365 days turnover) and negotiate dollar-for-dollar working capital peg adjustments.

Inventory Valuation & Aging

Reported Gross Book Inventory Value ($ USD)

Inventory Stagnant > 365 Days (% - e.g. 22%)

Estimated Scrap / Liquidation Recovery (% - e.g. 25%)

Purchase Price Adjustment & Reserves

Required Pre-Close Inventory Write-Down (Working Capital Deficit)

$528,000 Purchase Price Reduction

Normalized True Commercial Inventory Value

$2,672,000 True Market Inventory

Net Cash Transferred to Buyer at Closing

+$528,000 Direct Closing Cash Credit