Glossary · Reading the business
In short
This is an estimate of a business's or asset's value performed by the buyer or seller, not an independent third party. It serves as an initial assessment, often for negotiation purposes.
You might conduct an internal appraisal to gauge a reasonable offer price before engaging a professional appraiser. While useful for your own due diligence and crafting an LOI, an internal appraisal will not satisfy the SBA's requirement for an independent business valuation if the loan amount exceeds a certain threshold or if specific assets like real estate are involved.
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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