The Basics of Valuing a Small Business
Valuing a business can be difficult and complicated. It requires following a complex set of rules, knowledge of valuation techniques, factors driving value in the industry, laws and...
13 October, 2021
SBA Values Blog
Faster Equipment Appraisals: 4 Tips for Expedited Appraisals
When you need an equipment appraisal, you want it completed as quickly and painlessly as possible, without compromising quality. Equipment appraisal timing depends on a number of factors...
07 April, 2021
The Two Types of Equipment Appraisals: Desktop vs. Site Visit
Do I need a desktop or an on-site equipment appraisal? This is a question that should always be asked and discussed with the machinery & equipment appraiser you choose...
22 March, 2021
Establishing the Remaining Useful Life of Machinery and Equipment: The Factors Considered
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...
12 January, 2021
The Rent Adjustment: A Top 5 EBITDA Adjustment in Business Valuations
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...
12 November, 2020
Equipment Liquidation Values: A Lender’s Perspective
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...
22 October, 2020
Business Valuations during the “New Normal”: The Impact of COVID-19
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...
22 April, 2020
Policy Changes in the SBA SOP 50-10 5(J) that Impact Business Valuations and Equipment
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...
17 October, 2017
Determining a Reasonable Earnings Valuation Multiple
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...
25 May, 2017
Calculating Cash Flow (Appraiser vs. Lender)
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,...
01 May, 2017