Global cash flow is great for underwriting—but it doesn’t belong in a valuation model.

Valuation relies on free cash flow from the subject business—not combined with personal income, spouse wages, or real estate.

Why? Because buyers only buy the business, not the owner’s other income sources.

Takeaway for lenders: If you use global cash flow to support a higher valuation, you’re overstepping SBA’s requirements and confusing two very different concepts.

Check out our article and video on this topic!