A common request we receive from our bank clients is to include the machinery & equipment remaining useful life (RUL) in the equipment appraisal. This request often comes...
We are often asked by our clients why we need to adjust the rent paid by a business in a business valuation; and more specifically why we request...
How do you know what kind of value to expect for equipment or assets that are being liquidated? Depending on the circumstances surrounding the liquidation (and how fast...
Due to the precautions to limit and slow down the spread of the novel coronavirus 2019 (COVID-19), many small businesses have experienced some level of decline in their...
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...
In the previous SBAvalue™ article Calculating Cash Flow (appraiser vs. lender), we discussed how a business appraiser calculates Seller’s Discretionary Earnings (SDE), which is an integral cash flow...
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...