Supply Chain Considerations When Preparing to Sell a Business [PODCAST]

There are countless matters to consider when preparing to sell your business—one of which is your supply chain.

In this episode of The Transaction Abstract, Rob Kress, CEO of Waypost Advisors, joined Joe Hellman, partner at Redpath and Company, to discuss opportunities to shore up supply chain challenges or concerns to maximize the value of your business—or make your business more attractive—when searching for buyers.

LISTEN TO THE PODCAST:

Rob points out that there are a few main focus areas—low-hanging fruit—that provide significant opportunity to improve cash flow prior to sale.

• SLOB (slow-moving, obsolete) inventory
• Eliminating backlogs
• De-risking your supply chain and diversifying key supplier concentration
• Implementing strategic sourcing to drive cost reductions

In addition, Rob stresses that you need to understand your KPIs to identify where to focus for greatest impact—and always have a continuous improvement mindset. Just because you’ve always done it one way, doesn’t mean you should rest on your laurels and never consider new ideas or new ways of doing things.

Finally, don’t underestimate how much time some of this takes. If you really want to prepare for sale and implement new ideas and improvements to effectively improve your cash flow and attractiveness, you cannot start right before you go to market. Be proactive and plan ahead!