Furniture, Fixtures and EquipmentDefinitionAlso known as FF&E, these are the tangible assets of the business used to conduct its daily operations. What It MeansThe 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:
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. See Also |
Business Valuation ToolsNeed to Value a Business?See how to value a business based on income, assets and market comparables. New to Business Valuation?Business Valuation Handbook gives you 200 pages of must-have information on valuing a business. |
