💬 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

💬 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

💬 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

💬 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

💬 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

🔍 A buyer was acquiring a business for $1.2M. Everything looked clean—until we noticed the working capital wasn’t included. No cash. No receivables. No payables.Zero net working capital in the deal. The value dropped once we adjusted for what the buyer would actually receive. Lesson: consider the assets transferred, not just the income stream.

💡 In SBA valuations, working capital can quietly make—or break—a deal. When calculating free cash flow and total value, we ask: ✔️ What working capital is actually being transferred?✔️ Will the buyer have enough to run the business Day 1?✔️ Is there a working capital deficit they’ll need to fund? Ignoring working capital? That’s like … Continue reading 🧠 The Role of Working Capital in Valuation

🔎 One business had 74% of revenue from a single client. Everything else looked perfect—but this concentration was a massive risk. The client could: Leave Reprice Delay payment Sell to a competitor We applied a risk premium + valuation discount. Lender added contingencies. Deal still closed—with better protection. Buyers chase opportunity. Lenders must calculate risk.

🛠️ A business showed stable free cash flow—until we noticed recurring CapEx was buried in "repairs and maintenance." Turns out: $22K/year went to new equipment Another $14K for upgrades they made annually But none of it was treated as CapEx Once we corrected for true capital needs, cash flow dropped—and so did the value. Free … Continue reading 🚩 Red Flag Story: Recurring CapEx Hidden as Repairs

💲 Quick reminder: A business’s value isn’t the same as what it can support in loan terms. ⚠️ We’ve seen deals where: FMV = $1.6M But loan ask = $2.1M Why? Personal goodwill, buyer synergy, optimism Appraisers calculate value. Underwriters assess risk. Those aren’t always aligned. 📌 The loan amount must fit within what the … Continue reading 🧠 Valuation vs. Loan Amount