{"ok":true,"canonical_url":"https://dealroom.so/glossary/asset-appraisal","api_url":"https://dealroom.so/api/public/glossary/asset-appraisal","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"asset-appraisal","term":"Asset appraisal","group":"Reading the business","definition":"An independent valuation of specific tangible assets, like equipment or inventory, to determine their fair market value. Lenders use this to assess the collateral backing the loan.","what_it_means":"For deals involving significant fixed assets, your lender will likely require an asset appraisal to confirm their value. This ensures the collateral is sufficient and helps determine the loan-to-value ratio. If the appraisal comes in low, it could impact the deal structure or require more equity.","url":"https://dealroom.so/glossary/asset-appraisal","official_sources":[],"related":[{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"}],"related_questions":[{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"Is an independent appraisal always required when an acquisition includes significant goodwill?","url":"https://dealroom.so/sba-7a/questions/is-an-independent-appraisal-always-required-when-an-acquisition-includes-significant-goodw"},{"question":"How does a recent significant personal asset purchase affect my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-significant-personal-asset-purchase-affect-my-sba-7-a-loan-application"},{"question":"When is an independent appraisal required for non-real estate business assets being acquired?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-appraisal-required-for-non-real-estate-business-assets-being-acquir"},{"question":"What if the business I'm buying has intellectual property (e.g., patents, trademarks) as its main asset?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-intellectual-property-e-g-patents-trademarks-as-its-ma"},{"question":"How does an SBA 7(a) loan address the financing of intellectual property as a major business asset?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-address-the-financing-of-intellectual-property-as-a-major-busines"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Asset appraisal","url":"https://dealroom.so/glossary/asset-appraisal","source_type":"DealRoom Data"}}