Broker and I are spot on with company valuation. Except on top of that he wants to add inventory (~$1.5M) and fixed assets (~$300K).

Company is B2B distribution, so for inventory think industrial cleaning supplies or machine parts (they sell goods and installation services). There is no Work in Progress inventory. Fixed Assets from the balance sheet include displays, trucks, fixtures, computers and "leasehold improvements".

How are these two items (inventory, fixed assets) typically handled in SMB company valuations?