SBA Business Valuations

Certified Business Valuations

How It Works

SBA requires a qualified source to perform the SBA valuation, that’s us!

Several years ago the Small Business Administration (SBA) included provisions in its Standard Operating Procedures (SOP) that required an independent business valuation (appraisal) from a qualified source under certain circumstances. Here is the current version of these provisions, SBA SOP 50 10 7, effective on August 1, 2023.

SBA Business Valuation Features

SBA Business Valuation Features

    

SBA SOP Compliant

Excellent Customer Service

Competitive Pricing

Fast turnaround time! Quick as 3-5 days in certain rush situations

Business people silhouettes in city

When Do You Need An Independent Business Valuation?

Key word is Change of Ownership

If the amount being financed (including any 7(a), 504, seller, or other financing) minus the appraised value of real estate and/or equipment is greater than $250,000

If there is a close relationship between the buyer and seller (for example, transactions between family members or business partners)

Our SBA Business Valuation Process

Our SBA Business Valuation Process

    

Engage

  1. Discuss engagement with client
  2. Agree on terms (price and turnaround time)
  3. Retain
  4. Sign electronic engagement letter

Prepare

  1. Upload documents to a share-drive
  2. Gather Company background data
  3. Conduct industry and economic research
  4. Management interviews

Analyze

  1. Financial data
  2. Assess all methods of valuation (Asset, Market, and Income approach)
  3. Identify the most appropriate method
  4. Conduct valuation with supporting analysis

Finalize

  1. Send draft report to Lender
  2. Finalize invoice

Delivery

Send Final Report to Lender

Get Started

Important Key Information
Relating to SBA Valuations

The business valuation must be requested by and prepared for the lender

A qualified source must perform the valuation (THATS US!)

A current business valuation (not to include any real estate) by an independent third party hired by the Lender with proven experience in business valuations (Our team has completed over 1,000 business valuations for acquisitions!).

The scope of work in the business valuation must state if the transaction is a stock or asset sale

The cost of the valuation may be passed on to the Small Business Applicant

Any amount in excess of the business valuation may not be financed with the SBA guaranteed loan

SBA 7(a) loan proceeds used to purchase business assets or interest need to result in complete (100%) change of ownership