An SBA loan appraisal can make or break a deal. Proper preparation ensures a smooth process, aligns expectations between lender and borrower, and mitigates the risk of loan denial. This paper outlines what business owners and advisors need to know before the valuation begins. 1. Understand the Appraisal Requirements SBA SOP 50 10 8 requires … Continue reading How to Prepare for a SBA 7a Business Valuation
Valuation Insights & Articles
Welcome to Valuation Insights & Articles, where Highland Global shares thought leadership, expert guidance, and commentary on the ever-evolving world of business valuation. Here, you’ll find practical insights tailored for SBA lenders, business owners, attorneys, and financial professionals. Topics include SBA 7(a) valuation standards, goodwill analysis, tax-related valuation, M&A strategy, litigation support, and valuation methodology best practices. Stay informed with clear, actionable content rooted in real-world experience and regulatory knowledge.
The State of Small Business in America: A Strategic Guide for SBA Lenders, Owners, Brokers, and Appraisers
Part 1: Introduction and Overview Historical Perspective on Small Business in the U.S. Small businesses have been an integral part of America’s economic identity since the country’s founding. From colonial-era blacksmith shops to the modern digital startups of Silicon Valley, entrepreneurship has always played a pivotal role in driving growth, innovation, and social mobility. In … Continue reading The State of Small Business in America: A Strategic Guide for SBA Lenders, Owners, Brokers, and Appraisers
Understanding Business Valuations for SBA 7(a) Lending
Business valuations are critical for Small Business Administration (SBA) 7(a) lending, ensuring loans for business acquisitions are based on objective fair market value (FMV). SBA SOP mandates third-party valuations by qualified sources for change-of-ownership loans exceeding $250,000. This white paper explores the three primary valuation approaches (income, market, asset-based), the role of free cash flow, … Continue reading Understanding Business Valuations for SBA 7(a) Lending
✅ Machinery & Equipment Appraisals in SBA Lending — When Are They Required?
💬 If your loan package includes significant hard assets, a business valuation alone may not cut it. Here’s when lenders generally engage an M&E appraisal. 👉 Read our white paper on Machinery & Equipment Valuation for SBA Loans
✅ How to Treat Rent When Business and Real Estate Are Acquired Together
💬 When a buyer is acquiring both the business and the building, what rent should be used in the valuation? The answer matters. A lot. 👉 Check out our white paper on Normalizing Rent for SBA Transactions
Understanding Machinery & Equipment Appraisals: A Companion Discipline to Business Valuation
Machinery and Equipment (M&E) appraisals serve as a critical component in a wide range of financial, legal, and strategic contexts. From SBA 7(a) lending and asset-based loans to litigation support and estate planning, M&E valuations provide an objective analysis of the value of tangible business assets. This white paper outlines the principles, methods, value types, … Continue reading Understanding Machinery & Equipment Appraisals: A Companion Discipline to Business Valuation
✅ Discount for Lack of Marketability – Even for Controlling Interests
💬 DLOM isn’t just for minority stakes. Controlling interest or not, a private company without a liquid market deserves a discount. Here’s why — and how to apply it. 👉 Read the full DLOM white paper
Business Valuation Under USPAP: A Guide for Credible and Defensible Appraisals
The Uniform Standards of Professional Appraisal Practice (USPAP) provides a rigorous framework for business valuations, ensuring ethical, competent, and transparent appraisals. While not mandatory for all valuations, such as those for Small Business Administration (SBA) 7(a) loans, USPAP compliance enhances credibility and is often adopted in regulated or high-stakes contexts like litigation, tax reporting, and … Continue reading Business Valuation Under USPAP: A Guide for Credible and Defensible Appraisals
Valuing Intangible Assets in Private Company Transactions under SBA SOP 50 10 8
Small business acquisitions often involve paying for more than just tangible assets – buyers also pay for intangible value such as brand reputation, customer loyalty, or proprietary know-how. For SBA lenders, understanding and properly valuing this intangible value is critical to prudent underwriting. Under the U.S. Small Business Administration’s SOP 50 10 8 (effective June … Continue reading Valuing Intangible Assets in Private Company Transactions under SBA SOP 50 10 8
✅ FIRREA, USPAP, and SBA SOP — What’s Required in Business Valuations?
💬 Three different rulebooks. One valuation. Are your appraisals meeting the right standard for SBA lending? Here’s how to make sense of FIRREA, USPAP, and SBA SOP. 👉 Check out our comparison white paper
Highland Global Business Valuations 