Also known as FF&E, these are the tangible assets of the business used to conduct its daily operations.

The FF&E are the assets the business uses to accomplish its typical functions. Computers and other equipment, product display fixtures, and office furniture are some examples. The key points to address about FF&E in a business purchase are:

• Compile a complete list of FF&E assets.
• Determine their fair market value for business purchase price allocation, depreciation and sales tax, if applicable.
• Inspect the FF&E assets to determine if they are in working order.
• Determine if the condition of FF&E is sufficient to pass applicable governmental agency inspections.

The value of FF&E is included in the business value determined by the income-based business valuation methods such as Multiple of Discretionary Earnings and Discounted Cash Flow methods.