{"ok":true,"canonical_url":"https://dealroom.so/glossary/replacement-value","api_url":"https://dealroom.so/api/public/glossary/replacement-value","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":"replacement-value","term":"Replacement Value","group":"Reading the business","definition":"The cost to replace an asset with a new one of similar type and quality at current market prices. This is important for insurance purposes and valuing certain assets.","what_it_means":"When reviewing the assets included in the sale, consider their replacement value, especially for equipment and fixtures. An appraisal may use replacement value less depreciation to determine current worth. This helps you understand the true cost of replacing critical assets if they were damaged or became obsolete, impacting your future capital expenditure needs.","url":"https://dealroom.so/glossary/replacement-value","official_sources":[],"related":[{"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":"useful-life","term":"Useful life","url":"https://dealroom.so/glossary/useful-life"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"related_questions":[{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"},{"question":"How does the SBA evaluate the value of contributed equipment for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"When acquiring a business, can an SBA loan finance 100% of the goodwill value?","url":"https://dealroom.so/sba-7a/questions/when-acquiring-a-business-can-an-sba-loan-finance-100-of-the-goodwill-value"},{"question":"How does the SBA typically value goodwill in a business acquisition for lending purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-typically-value-goodwill-in-a-business-acquisition-for-lending-purposes"},{"question":"How does a lender determine the fair market value of business equipment used as collateral?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lender-determine-the-fair-market-value-of-business-equipment-used-as-collateral"}]},"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 — Replacement Value","url":"https://dealroom.so/glossary/replacement-value","source_type":"DealRoom Data"}}