The list of assets with column for fair market value is what the equipment could be realistically sold for today, which both seller and buyer agree on (at least for vehicles, office equipment = maybe, but the majority of the list is equipment).

The current year revenues are around $2.8m and the discretionary earnings are around $X and the asset sale value is $Y for a multiple of around 3.9 times. The equity value is $XY, which is roughly equal to the asset sale value PLUS cash, A/R and other liquid financial assets MINUS all liabilities. The equity value is lower than the asset sale value because the liabilities are greater than the cash plus other liquid financial assets.

The proper entry for fixed assets is the book value (not the estimated fair market value). All industry benchmarks are based on book values, e.g. return on equity, asset turnover, etc.

The main reason why a business is purchased is the earnings/cash flow available to the ownership. In the current valuation, a multiple of nearly 4 times is already quite "healthy". Even though the vehicles are worth $600K or so, it is ultimately the amount of cash flow available to the prospective owner which drives value. Paying a price higher than 4 times cash flow would lead to unacceptable debt payments from the buyer's perspective.

Intangibles should not be added either unless they are already on the balance sheet, and again only at book value.

Having said this, if you feel the value should be higher, you can elevate the fixed asset figure from book value to fair market value - but I would not recommend this as it would lift the multiple over 4 times which I do not think is proper in this case.

You definitely do not want to include the vehicles on the inventory line as this is a completely different type of asset.