Glossary · Reading the business
In short
This is the specific approach used to determine a business's fair market value, often based on income, assets, or market comparisons. It directly impacts your offer price.
For SBA loans over a certain threshold, an independent business valuation is required. The appraiser will use methods like the asset approach, income approach (e.g., SDE or EBITDA multiples), or market approach. Understand the methodology to challenge or confirm the business's asking price.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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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