{"ok":true,"canonical_url":"https://dealroom.so/glossary/valuation-report","api_url":"https://dealroom.so/api/public/glossary/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":"valuation-report","term":"Valuation report","group":"Reading the business","definition":"A formal document from an independent appraiser that estimates the fair market value of the business you intend to buy. For an SBA loan, it's often a mandatory document to justify the purchase price.","what_it_means":"The SBA requires a valuation report if the total financing amount (including any seller notes) exceeds $500,000, or if there's a perceived close relationship between you and the seller. Review this report carefully to understand the methodologies used, the underlying assumptions, and any adjustments made to the business's financial statements.","url":"https://dealroom.so/glossary/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":"market-approach","term":"Market approach","url":"https://dealroom.so/glossary/market-approach"},{"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"}],"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":"What happens if a required environmental report (Phase I ESA) identifies potential contamination?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-required-environmental-report-phase-i-esa-identifies-potential-contamina"},{"question":"What if my personal credit report shows a minor collection from several years ago?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-minor-collection-from-several-years-ago"},{"question":"What if the lender requires additional environmental due diligence beyond a Phase I report?","url":"https://dealroom.so/sba-7a/questions/what-if-the-lender-requires-additional-environmental-due-diligence-beyond-a-phase-i-report"}]},"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 — Valuation report","url":"https://dealroom.so/glossary/valuation-report","source_type":"DealRoom Data"}}