{"ok":true,"canonical_url":"https://dealroom.so/glossary/comparable-sales","api_url":"https://dealroom.so/api/public/glossary/comparable-sales","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":"comparable-sales","term":"Comparable Sales","group":"Reading the business","definition":"These are recent sales of similar businesses in your industry and market. They provide crucial benchmarks for valuing the target business and ensuring your offer is reasonable.","what_it_means":"Business appraisers and your M&A advisor will use comparable sales data to establish the fair market value of the business you're acquiring. This market-based valuation method helps validate the asking price and supports the lender's underwriting decision. Always review the data to understand the valuation rationale.","url":"https://dealroom.so/glossary/comparable-sales","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"}],"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":"market-analysis","term":"Market analysis","url":"https://dealroom.so/glossary/market-analysis"}],"related_questions":[{"question":"How does a lender evaluate the market value of collateral when there are limited comparable sales?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lender-evaluate-the-market-value-of-collateral-when-there-are-limited-comparabl"},{"question":"Are proceeds from personal investment sales eligible for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-proceeds-from-personal-investment-sales-eligible-for-equity-injection"},{"question":"Can I get an SBA 7(a) loan if my business is a startup with no sales yet?","url":"https://dealroom.so/sba-loans/basics/can-i-get-an-sba-7-a-loan-if-my-business-is-a-startup-with-no-sales-yet"},{"question":"How does the SBA evaluate the eligibility of an applicant business involved in multi-level marketing or pyramid sales schemes?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-eligibility-of-an-applicant-business-involved-in-multi-level"},{"question":"How does a lender ensure timely and accurate reporting of 7(a) loan sales on the secondary market to the SBA?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-timely-and-accurate-reporting-of-7-a-loan-sales-on-the-secondary-"},{"question":"What are the SBA's reporting requirements for 7(a) lenders regarding sales of guaranteed loan portions on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-reporting-requirements-for-7-a-lenders-regarding-sales-of-guaranteed-lo"}]},"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 — Comparable Sales","url":"https://dealroom.so/glossary/comparable-sales","source_type":"DealRoom Data"}}