Glossary · Reading the business
In short
The cost to replace an asset with a new one of similar type and quality at current market prices. This is important for insurance purposes and valuing certain assets.
When reviewing the assets included in the sale, consider their replacement value, especially for equipment and fixtures. An appraisal may use replacement value less depreciation to determine current worth. This helps you understand the true cost of replacing critical assets if they were damaged or became obsolete, impacting your future capital expenditure needs.
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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