Construction wholesaler separation: division of warehouse and goods
Two partners divided an inventory worth 840,000 PLN. We created two separate entities in 4 weeks, avoiding a total sales block.
Two partners of a wholesaler near Piaseczno could not reach an agreement regarding the division of warehouse stock worth 841,300 PLN. The risk of company paralysis and loss of 11 employees required a quick operational cut without destroying relations with suppliers.
The challenge
Bud-Mix had been operating for 9 years, but in October 2024 conflict between the owners led to a situation where goods stopped being shipped to clients. There was 841,300 PLN net in goods in stock, and 17 key suppliers started sending payment reminders, fearing for the company's stability. One of the construction chemical producers even threatened to withdraw a trade credit of 120,000 PLN, which would mean an immediate lack of goods on shelves.
Employees did not receive clear orders because each partner issued conflicting instructions. The situation was difficult as the assortment was very diverse – from heavy ceramics to small mounting accessories, which made a simple 'fifty-fifty' asset split difficult. Without an external mediator who knows how to calculate margins, the company was heading straight for the bailiff's hammer.
Our approach
We entered the wholesaler on Monday morning in a 3-person team. Our method is based on the principle that numbers have no emotions, so we started with a full physical inventory, which took us exactly 3 business days. We analyzed the rotation of each group of goods so that the division was fair not only in terms of invoice value, but also the real chance for quick sale of goods by the new, separate owners.
To be honest, the first week was difficult because emotions won over Excel, but hard data on invoice payment terms (318 positions total) allowed for calming the situation. We prepared a model for dividing the warehouse into two operational zones, using the existing infrastructure of the 1200 m2 hall. We consulted every step with accounting to avoid unnecessary taxes on goods shifts.
The solution
Within 28 business days, we led to the signing of an agreement that legally and physically separated Bud-Mix into two independent entities. We divided the goods into two packages worth 420,100 PLN and 421,200 PLN, with the difference balanced in cash. We physically separated a separate section in the warehouse for the second partner, allowing them for an operational start under a new Tax ID without the need for an immediate move.
Business had to keep running, so we developed a system for joint use of forklifts and a loading ramp for a transition period of 4 months. Additionally, we prepared letters to 31 of the most important suppliers, explaining the situation and guaranteeing order continuity. This allowed both new firms to maintain the discounts worked out over years with producers.
Results
We managed to carry out full separation without closing the wholesaler for a single day. The partners parted ways, maintaining financial liquidity and avoiding costly court cases, which according to our estimates could have lasted up to 3 years.
Timeline
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October 2024Physical inventory and margin analysis of 318 goods positions
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November 2024Negotiations of hall division terms and assignment of supplier agreements
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November 2024Finalization of legal documentation and start of two separate firms
"Initially I didn't believe we would agree without lawyers and years in court. Corporate Bridge set a pace we couldn't have maintained ourselves. It wasn't cheap, but the losses from a sales block would have been five times larger."