Glossary · Reading the business
In short
A valuation performed by the buyer or their advisor using available financial data. Buyers care because it helps them determine a fair offer price and understand the business's worth independent of the seller's asking price.
While an SBA lender will require a third-party appraisal for deals over $500k, your internal valuation is crucial for initial offer structuring. Use it to compare against the asking price and identify key value drivers or red flags before engaging professional appraisers.
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.
Free · No documents · Usually same-day