{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-valuation-report","api_url":"https://dealroom.so/api/public/glossary/business-valuation-report","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":"business-valuation-report","term":"Business valuation report","group":"Reading the business","definition":"This is a formal document that estimates the fair market value of a business. Your 7(a) lender will require one to ensure the purchase price is justified.","what_it_means":"For any 7(a) acquisition over $500,000, your lender will require an independent business valuation report prepared by a qualified appraiser. This report verifies that the acquisition price is reasonable and that there's sufficient collateral (including goodwill) to support the loan. Review this report carefully to understand the appraiser's methodology and assumptions.","url":"https://dealroom.so/glossary/business-valuation-report","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"}],"related_questions":[{"question":"How thoroughly does the SBA review the business valuation report provided by the lender?","url":"https://dealroom.so/sba-7a/questions/how-thoroughly-does-the-sba-review-the-business-valuation-report-provided-by-the-lender"},{"question":"What is the typical timeframe for a business valuation report when applying for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-timeframe-for-a-business-valuation-report-when-applying-for-an-sba-7-a"},{"question":"When is a business valuation report required for a 7(a) change of ownership transaction, and who must perform it?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-valuation-report-required-for-a-7-a-change-of-ownership-transaction-and"},{"question":"When is an independent business valuation required for a partner buyout?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-business-valuation-required-for-a-partner-buyout"},{"question":"What if the business valuation is insufficient to support the purchase price?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-valuation-is-insufficient-to-support-the-purchase-price"},{"question":"What is the importance of a professional business valuation for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-importance-of-a-professional-business-valuation-for-an-acquisition"}]},"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 — Business valuation report","url":"https://dealroom.so/glossary/business-valuation-report","source_type":"DealRoom Data"}}