MANAGEMENT MATTERS

selling product to get larger bank loans If the business would have failed, the bank would have discovered it had made loans against inventory which did not exist. If things were to go sour, and proof of her purposely overstating inventory value was discovered, she could be held liable

One of my good friends negotiated to purchase a major multi-national manufacturer which he wanted to own and run The business had fallen on hard times so he saw an opportunity When he went to view the operations he told me he discovered years-old inventory, counted as current, stacked in tunnels between the buildings He was not successful in his bid for the business, but the buyers did have to clean up a huge mess and struggled to get the business financially sound

A current, clean, accurate inventory value is of paramount importance to the business and its financial backers PB

Matthew D. Mohr CEO, Dacotah Paper Co. mmohr@dacotahpaper com