Glossary · Reading the business
In short
The estimated price an asset would fetch if sold quickly under duress. This is often far less than fair market value and what a bank uses for collateral valuation.
Lenders value business assets at their forced liquidation value, not what you might think they're worth in an ongoing operation. This conservative valuation determines how much collateral the bank sees. Don't confuse it with a going-concern value, which is usually much higher.
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.
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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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