Glossary · Reading the business
In short
Brand equity is the commercial value derived from consumer perception of a brand, rather than from the product or service itself. It reflects the strength and recognition of a company's name and reputation.
When buying a business, strong brand equity can mean customer loyalty, higher pricing power, and easier market entry for new products. It's an intangible asset that contributes to goodwill. While hard to quantify precisely, a lender will consider it in the overall business valuation as a factor supporting future cash flow.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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