Glossary · Reading the business
In short
A professional appraiser's objective assessment of a business's fair market value. Lenders require this to ensure the purchase price is reasonable for the assets and cash flow.
For most 7(a) acquisitions, the lender will order an independent valuation to confirm the business is worth at least the loan amount. This report helps justify the purchase price and ensures the bank isn't over-lending. Pay attention to the valuation's assumptions; they directly impact the numbers.
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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