Glossary · Reading the business
In short
This is a valuation metric derived from comparing a business to similar businesses that have recently sold. It's often expressed as a multiple of EBITDA or SDE.
While not the sole valuation method for SBA loans, market multiples provide a quick benchmark for a business's worth. Understand how the seller's asking price compares to industry multiples, but remember that unique business factors can justify deviations. A good appraisal will consider multiple valuation approaches.
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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