{"ok":true,"canonical_url":"https://dealroom.so/glossary/independent-valuation","api_url":"https://dealroom.so/api/public/glossary/independent-valuation","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":"independent-valuation","term":"Independent valuation","group":"Reading the business","definition":"A professional appraiser's objective assessment of a business's fair market value. Lenders require this to ensure the purchase price is reasonable for the assets and cash flow.","what_it_means":"For most 7(a) acquisitions, the lender will order an independent valuation to confirm the business is worth at least the loan amount. This report helps justify the purchase price and ensures the bank isn't over-lending. Pay attention to the valuation's assumptions; they directly impact the numbers.","url":"https://dealroom.so/glossary/independent-valuation","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":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"}],"related_questions":[{"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":"How long does an independent business valuation typically take for a $1.5 million acquisition?","url":"https://dealroom.so/sba-7a/questions/how-long-does-an-independent-business-valuation-typically-take-for-a-1-5-million-acquisiti"},{"question":"When is an independent business valuation mandatory for a 7(a) change of ownership loan?","url":"https://dealroom.so/for-lenders/questions/when-is-an-independent-business-valuation-mandatory-for-a-7-a-change-of-ownership-loan"},{"question":"What type of independent valuation is required for non-cash assets to count as equity injection?","url":"https://dealroom.so/sba-7a/questions/what-type-of-independent-valuation-is-required-for-non-cash-assets-to-count-as-equity-inje"},{"question":"When is an independent business valuation required for an SBA 7(a) acquisition, especially for related party transactions?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-business-valuation-required-for-an-sba-7-a-acquisition-especially-f"},{"question":"When must a lender obtain an independent business valuation for a change-of-ownership between $250,000 and $500,000?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-obtain-an-independent-business-valuation-for-a-change-of-ownership-betw"}]},"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 — Independent valuation","url":"https://dealroom.so/glossary/independent-valuation","source_type":"DealRoom Data"}}