🧠 Valuation Insight: Inventory Can’t Carry the Deal

Ā āš™ļø In equipment distribution, high revenue can be misleading if:

  • Inventory is overvalued or slow-moving
  • Gross margins are razor-thin
  • Owner plays multiple critical roles (sales, procurement, ops)
  • Customer base isn’t recurring or contract-based

šŸ“Œ Don’t let top-line revenue distract from thin margins or inventory drag. Normalize cash flow, and separate inventory value from goodwill.