FF&E Question in a Partial Buyin - Asset Sale Deal

searcher profile

February 03, 2025

by a searcher from State University of New York College at Cortland in Durham, NC, USA

In a main street deal, how much does the FF&E list change the value of the business?

In the deal I am in DD with, the seller’s truck was part of the trucks being sold in the deal but he was pretty upset to learn that they (broker) didn’t remove it from the list. As one of the more expensive trucks, I would think that would change the valuation of the deal but the broker when I asked, he said it didn’t really change anything. Can someone give me some advice on this. There may be other trucks that should be off that list too and also the trucks seem highly overvalued so I am thinking if the assets that convey with the business do change the value of the business, I will use the odometer readings to get KBB values and come up with the real fair market value and then hopefully adjust the business value accordingly.
How have others dealt with this type of situation?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I agree with Goran above. However, the value of first businesses is derived via the multiple of cash flow. If there are vehicles in the business that are not key to operations, that does not change the cash flow or multiple on the business being paid. It just means there are less fixed assets needed to run the business, which is ultimately a good thing. If you would like to discuss further, you can reach me here or directly at redacted
commentor profile
Reply by a lender
in Falmouth, MA, USA
^redacted‌, if these trucks are essential to the business and aren’t part of the sale, you’ll need to replace them. I’d recommend making sure the CAPEX is accounted for in the adjusted EBITDA. Let me know if you’d like to discuss this further—feel free to reach out to redacted
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