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Small Business Resources > What is FF&E? - Furniture Fixtures and Equipment

What is FF&E? - Furniture Fixtures and Equipment

Definition of:   FF&E - Furniture, Fixtures & Equipment

FF&E stands for Furniture, Fixtures and Equipment. This is the equipment that is used to produce the product of the business being offered for sale. The owner/seller is asked to calculate the estimated fair market value of the Furniture, Fixtures and Equipment (FF&E) that may or may not be included in the sale of their business. Most FF&E are included in the asking price. There are some examples of FF&E that the seller may decide not to include in their asking price. Some examples may be a company truck or personal computer.

    If you are in the process of selling your business, estimate the value of your Furniture, Fixtures and Equipment that will be included in the asking price. We recommend, within the first month of listing your business for sale, that you put together a very accurate itemized list of all Furniture, Fixtures and Equipment included in the asking price. Once this itemized list is compiled, compare it to your estimated value and make corrections if necessary. If you are using a business broker, inform him of the updated Furniture, Fixtures and Equipment value. If you are marketing your business for sale yourself, change all the ads and offering documents you have prepared.

    Once you find a buyer and your business is ready to close, you will be required to put this itemized list together. If your estimate is completely inaccurate, this gives the potential buyer room to negotiate a lower purchase price. If your Furniture, Fixtures and Equipment value is accurate from day one, you will have no unexpected changes before closing.

    If you are in the process of buying a business, we recommend that you ask the seller for a full itemized list of all Furniture, Fixtures and Equipment that are included, and not included, in the asking price before you make an offer. This will help you to put a better value on what you are actually buying.


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