💬 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
SBA 7a appraisal
✅ 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
✅ Are You Inflating Value by Ignoring Taxes?
💬 There’s no such thing as a ‘tax-free return.’ If you’re using a market-based cap rate on untaxed S-corp income, you’re overstating value. Let’s fix that. 👉 Get the full breakdown in our white paper on tax-affecting income
Special Purpose Properties in SBA 7(a) Lending
In the realm of Small Business Administration (SBA) lending, understanding the classification and appraisal of Special Purpose Properties is crucial. These properties present unique challenges due to their specific design and limited adaptability. This article explores the SBA's definition of Special Purpose Properties, the characteristics that categorize a property as such, clarifies why appraising these … Continue reading Special Purpose Properties in SBA 7(a) Lending
Distributions and the S Corporation: Understanding Their Role in Financial Statements
Misunderstandings about S corporation shareholder distributions often arise among business owners and non-accounting professionals, particularly the belief that distributions reported on a Schedule K-1 are business expenses. This confusion can distort perceptions of cash flow, profitability, and business valuation. This paper clarifies the nature of S corporation distributions and their impact on financial statements, including … Continue reading Distributions and the S Corporation: Understanding Their Role in Financial Statements
Highland Global Business Valuations 