{"ok":true,"canonical_url":"https://dealroom.so/glossary/blue-sky","api_url":"https://dealroom.so/api/public/glossary/blue-sky","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":"blue-sky","term":"Blue sky","group":"Reading the business","definition":"This refers to the intangible value of a business beyond its tangible assets, often representing goodwill, brand recognition, or future earning potential. As a buyer, you care because this is what you're paying for when the purchase price exceeds asset value.","what_it_means":"In an acquisition, blue sky is essentially the goodwill component of the purchase price, which SBA loans can finance. It's crucial to understand the drivers of this intangible value and ensure it's supported by the business's historical earnings and future projections. A business valuation will often quantify this amount.","url":"https://dealroom.so/glossary/blue-sky","official_sources":[],"related":[{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"intangible-asset","term":"Intangible asset","url":"https://dealroom.so/glossary/intangible-asset"},{"slug":"earnings","term":"Earnings","url":"https://dealroom.so/glossary/earnings"}],"related_questions":[{"question":"How does the SBA assess the value of \"blue sky\" or intangible assets when underwriting a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-assess-the-value-of-blue-sky-or-intangible-assets-when-underwriting-a-bus"}]},"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 — Blue sky","url":"https://dealroom.so/glossary/blue-sky","source_type":"DealRoom Data"}}