{"ok":true,"canonical_url":"https://dealroom.so/glossary/internal-valuation","api_url":"https://dealroom.so/api/public/glossary/internal-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":"internal-valuation","term":"Internal valuation","group":"Reading the business","definition":"A valuation performed by the buyer or their advisor using available financial data. Buyers care because it helps them determine a fair offer price and understand the business's worth independent of the seller's asking price.","what_it_means":"While an SBA lender will require a third-party appraisal for deals over $500k, your internal valuation is crucial for initial offer structuring. Use it to compare against the asking price and identify key value drivers or red flags before engaging professional appraisers.","url":"https://dealroom.so/glossary/internal-valuation","official_sources":[],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"multiple","term":"Multiple","url":"https://dealroom.so/glossary/multiple"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"}],"related_questions":[{"question":"Can an SBA loan finance a partner buyout if we've only used an internal valuation?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-loan-finance-a-partner-buyout-if-we-ve-only-used-an-internal-valuation"},{"question":"What if a lender's internal loan review discovers a potential eligibility issue post-closing?","url":"https://dealroom.so/for-lenders/questions/what-if-a-lender-s-internal-loan-review-discovers-a-potential-eligibility-issue-post-closi"},{"question":"Can a lender accept contributed equity in the form of existing machinery valued by an internal appraisal?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-accept-contributed-equity-in-the-form-of-existing-machinery-valued-by-an-inte"},{"question":"What are common reasons for significant delays in the SBA's *internal* review and authorization of a loan?","url":"https://dealroom.so/sba-7a/questions/what-are-common-reasons-for-significant-delays-in-the-sba-s-internal-review-and-authorizat"},{"question":"What information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran?","url":"https://dealroom.so/for-lenders/questions/what-information-on-sba-form-1919-must-be-consistent-with-the-lender-s-internal-credit-mem"},{"question":"How long does the SBA's internal review and approval process take after the lender submits my complete application?","url":"https://dealroom.so/sba-7a/questions/how-long-does-the-sba-s-internal-review-and-approval-process-take-after-the-lender-submits"}]},"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 — Internal valuation","url":"https://dealroom.so/glossary/internal-valuation","source_type":"DealRoom Data"}}