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Appraisals for Furniture, Fixtures, and Equipment

April 10, 2013

From an appraiser’s perspective, furniture, fixtures, and equipment (FF&E) includes everything a business needs to function that is not attached to the business’ building. Things like office furniture, technical components, filing cabinets, and cases used to hold collateral are all considered FF&E. Items like these are on a fast depreciation schedule, so business owners tend not to consider them as valuable when determining a business’ worth. However, when added together, they can dramatically impact a business’ value and despite their depreciation schedule, these items shouldn’t be overlooked.

One of the services that certified appraisers sometimes offer their clients is inventory appraisal and asset evaluation. Items that fall under the FF&E umbrella are important in these services as well. There are many reasons why a business owner might want an inventory appraisal or asset verification. It might be to meet federal government requirements or conform to regulations in their industries as they evolve. An inventory appraisal, asset verification, or FF&E appraisal also can help businesses receive financing from a lender or attract investors because both require existing collateral to be verified. Investors and lenders also want to know where and how their money is used and want to confirm that the business assets their money supports are physically in a company’s building each year.

If this is a service you’d like to add to your portfolio, the NEBBI network of certified appraisers is a great place to start. Talk to other people in your industry about how they perform this service or take part in a training session. To learn about our training schedule, contact us today!

The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.

By: NEBB Institute

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