The Myth:
If the lender approves the deal, the business must be worth the price.

The Reality:
Loan approval focuses on repayment ability and risk tolerances — not necessarily true economic value. Bankability doesn’t automatically confirm fair market value.

Why It Matters:
Confusing financing approval with valuation quality can lead to overpriced acquisitions and unsupported loans.

Practical Tip:
Always perform independent valuation analysis — don’t assume lender approval verifies fair market value.