Glossary · Reading the business
In short
These are recent sales of similar businesses in your industry and market. They provide crucial benchmarks for valuing the target business and ensuring your offer is reasonable.
Business appraisers and your M&A advisor will use comparable sales data to establish the fair market value of the business you're acquiring. This market-based valuation method helps validate the asking price and supports the lender's underwriting decision. Always review the data to understand the valuation rationale.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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