The Myth:A business appraisal is the same thing as an equipment or asset appraisal. The Reality:Business valuations analyze total enterprise (or equity) value — including goodwill, cash flow, risk, and intangibles — while asset appraisals focus on the resale value of physical equipment. Why It Matters:Confusing the two can result in incomplete collateral analysis or … Continue reading 📚 Valuation Myth: A Business Appraisal = Equipment Appraisal
SBA 7a Business Valuation Myths
35 Business Valuation Myths Every SBA Lender Should Know
In the world of SBA 7(a) lending, understanding business valuation is essential — and misunderstanding it can be costly. From misapplying earnings multiples to overestimating goodwill or ignoring normalization adjustments, even well-meaning lenders can fall for common myths that jeopardize compliance with SBA SOP 50 10 8 and increase the risk of guaranty repair or denial. This blog series unpacks 35 of the most common valuation myths in SBA lending, breaking down each one with clear, lender-focused insights. Whether you’re reviewing an independent appraisal or screening a deal pre-LOI, these posts will help you recognize red flags, ask better questions, and protect your portfolio.
📚 Valuation Myth: Projections Don’t Need Support
The Myth:Future projections are enough to justify value — no need to back them up. The Reality:Projections without clear support are just optimistic guesses. Buyers and SBA lenders need evidence — like written plans, assumptions, customer contracts, and operating history — to trust future performance claims. Why It Matters:Relying on unsupported projections can inflate value … Continue reading 📚 Valuation Myth: Projections Don’t Need Support
📚 Valuation Myth: All Valuations Are Created Equal
The Myth:As long as the report has a number, it's reliable. The Reality:Not all valuations are based on credible data, accepted methods, or professional standards. Some are biased, boilerplate, or created to hit a target. Why It Matters:Relying on a weak or non-compliant valuation can lead to poor decisions — or SBA loss of guarantee. … Continue reading 📚 Valuation Myth: All Valuations Are Created Equal
Highland Global Business Valuations 