The SBA has released an updated version of its Standard Operating Procedures (SOP) 50 10 5(J), which is effective January 1, 2018. The following discussion highlights key revisions...
Seller's Discretionary Earnings (SDE) is an integral cash flow stream for small businesses. SDE encompasses all cash flows paid to a single owner-operator, including an adjustment for owner's salary,...
A Special Purpose Property is defined in the SBA Standard Operating Procedure (SOP) 50 10 5(I) as “a limited market property with a unique physical design, special construction materials, or a...
The price to revenue multiple (also referred to as the revenue multiple or sales multiple) is often used by small business professionals to estimate the value of a...
Prior to obtaining a business appraisal for a change of ownership loan, one of the most important processes for an SBA lender is structuring their use of proceeds...
As stated in the SBA Standard Operating Procedures (SOP), if the purchase price of a business includes intangible assets in excess of $500,000, the borrower (or seller, in...
The SBA has released an updated version of its Standard Operating Procedures (SOP) 50 10 5(H), which is effective May 1, 2015. The following discussion highlights key revisions...
Rules of thumb can be useful to determine if a proposed business transaction seems reasonable prior to accepting an SBA loan application. However, most businesses are unique, and...
Business valuations compiled for SBA purposes are complex, often containing over 80 pages of financials, projections and analysis. Unfortunately, many readers are tempted to skim the summary page...