Glossary · Reading the business
In short
This valuation method estimates a business's worth by comparing it to similar businesses that have recently sold. As a buyer, it provides a crucial reality check on the asking price against real-world transactions.
An appraiser using the market approach will analyze transaction multiples (like price/EBITDA) from comparable businesses. You need to scrutinize the selection of these comparable companies to ensure they truly align with the target business's size, industry, and geographic market. This helps validate the business valuation.
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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