What are creative ways to value FF&E when underwriting a company?

by a searcher from University of Illinois at Urbana-Champaign

2 years ago

In a service business, do you just add the appraised value of the equipment (i.e. vehicles, specialty equipment) to the valuation of the cash flow? Have heard multiple approaches, considering that the equipment is needed to generate the cash flow.

0 likes
70 views
4 comments

searcher from Harvard University - Harvard Business School

+1 to ^Searchfunder member‌

2 years ago | like reply | 1 like

intermediary from The University of Chicago - Booth School of Business

Sheila Spangler answer is right on the spot. Do not double-dip, nor take weighted values from different valuation methods. Value of a business should include any and all assets required to generate the profit/cash flow

2 years ago | like reply | 3 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.