Selling a business involves more than just handing over the keys. It requires careful consideration of the assets you’ve accumulated over the years. The Furniture, Fixtures and Equipment (FF&E) List, a comprehensive inventory of tangible assets, is a critical component of the sales process. In this blog, we’ll explore what equipment to include in the FF&E list, and how to handle personal items not included in the sale.

Business Equipment:

Begin with a detailed breakdown of all furniture, fixtures and equipment directly related to your business operations. This encompasses manufacturing machinery, office technology, vehicles, furniture, and specialized tools. These assets provide a clear picture of your business’s operational efficiency and capabilities.

Property and Infrastructure:

List any owned real estate, buildings, warehouses, and land associated with your business. These properties play a significant role in the valuation and perception of your company’s assets.

IT Infrastructure:

Don’t forget to mention servers, networking equipment, data centers, and any technology that powers your business operations. These assets showcase your technological readiness.

Personal Items:

Here’s where it gets nuanced. Some personal items may not be part of the sale, and it’s essential to communicate this clearly. Personal memorabilia, family photos, and items unrelated to the business should be specified as excluded from the FF&E list.

Handling Personal Items:

To avoid confusion, create a separate section in your FF&E list specifically listing personal items that will not be included in the sale. Describe these items clearly and provide reasons for their exclusion.

Transparent Communication:

In the sales process, transparency is key. Clearly communicate to potential buyers which personal items will not be included in the sale. This prevents misunderstandings and ensures a smoother transaction.

Inventory and Supplies:

While not equipment per se, detailing your current inventory and supplies is crucial. It demonstrates the value of goods on hand and gives potential buyers insights into the products they’ll inherit.  Inventory and supplies should be listed as a separate inventory list.

Intellectual Property and Licenses:

Include patents, trademarks, copyrights, and licenses. These intangible assets contribute to the uniqueness and potential of your business.

Leasehold Improvements:

Highlight any leasehold improvements you’ve made to rented spaces. While not assets you can take with you, they can influence the appeal of your business to buyers.

Consult with Professionals:

Working with legal and financial experts is highly recommended. They can help ensure that your FE list is accurate, legally sound, and inclusive of all relevant information.

Final Thoughts:

Preparing a thorough FF&E list requires meticulous attention to detail. It not only reflects the value of your business but also sets the tone for transparent and professional interactions with potential buyers. By including essential equipment and clearly delineating personal items, you lay the groundwork for a successful sale that benefits all parties involved.