{"ok":true,"canonical_url":"https://dealroom.so/glossary/brand-equity","api_url":"https://dealroom.so/api/public/glossary/brand-equity","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":"brand-equity","term":"Brand Equity","group":"Reading the business","definition":"Brand equity is the commercial value derived from consumer perception of a brand, rather than from the product or service itself. It reflects the strength and recognition of a company's name and reputation.","what_it_means":"When buying a business, strong brand equity can mean customer loyalty, higher pricing power, and easier market entry for new products. It's an intangible asset that contributes to goodwill. While hard to quantify precisely, a lender will consider it in the overall business valuation as a factor supporting future cash flow.","url":"https://dealroom.so/glossary/brand-equity","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"}],"related_questions":[{"question":"Are SBA 7(a) loans only for brand new businesses (startups)?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-brand-new-businesses-startups"},{"question":"Can an SBA 7(a) loan help me start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-start-a-brand-new-business"},{"question":"Can an SBA 7(a) loan be used to start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-start-a-brand-new-business"},{"question":"Can I use an SBA 7(a) loan to start a brand-new business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-start-a-brand-new-business"},{"question":"Can an SBA 7(a) loan be used to purchase a specific brand of franchise?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-specific-brand-of-franchise"},{"question":"Is the SBA 7(a) loan suitable for starting a brand new business from scratch?","url":"https://dealroom.so/sba-loans/basics/is-the-sba-7-a-loan-suitable-for-starting-a-brand-new-business-from-scratch"}]},"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 — Brand Equity","url":"https://dealroom.so/glossary/brand-equity","source_type":"DealRoom Data"}}