The Myth:
If a strategic buyer is willing to pay more, that sets fair market value.

The Reality:
Fair Market Value (FMV) is based on a hypothetical financial buyer — not a synergistic or strategic buyer who sees special value others wouldn’t.

Why It Matters:
Confusing strategic premiums with FMV can result in misleading valuations for loans, taxes, and fairness opinions.

Practical Tip:
Use FMV standard for SBA lending, tax and regulatory purposes.