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SBA Business Valuations

Certified Business Valuations

----- Specifically for SBA lenders

When do you need a independent business valuation?

 

Several years ago the Small Business Administration (SBA) included provisions in its Standard Operating Procedures (SOP) that required an independent business valuation (appraisal) from a qualified source under certain circumstances. Here is the current version of these provisions, SOP 50 10 5(J), effective on January 1, 2018.

  • Key word is Change of Ownership

  • If the amount being financed (including any 7(a), 504, seller, or other financing) minus the appraised value of real estate and/or equipment is greater than $250,000

  • If there is a close relationship between the buyer and seller (for example, transactions between family members or business partners)

Important key information relating to SBA Valuations

  • The business valuation must be requested by and prepared for the lender

  • A qualified source must perform the valuation

  • The scope of work in the business valuation must state if the transaction is a stock or asset sale

  • The cost of the valuation may be passed on to the Small Business Applicant

  • Any amount in excess of the business valuation may not be financed with the SBA guaranteed loan

  • SBA 7(a) loan proceeds used to purchase business assets or interest need to result in complete (100%) change of ownership

See BGH's latest article on the most recent SBA SOP regarding business valuations!

Our Process

 

Engage

  1. Discuss engagement with client

  2. Agree on terms (price and turnaround time)

  3. Retain

  4. Sign electronic engagement letter

Prepare

  1. Upload documents to a share-drive

  2. Gather Company background data

  3. Conduct industry and economic research

  4. Management interviews

Analyze

  1. Financial data

  2. Assess all methods of valuation (Asset, Market, and Income approach)

  3. Identify the most appropriate method

  4.  Conduct valuation with supporting analysis

Finalize

  1. Send draft report to Lender

  2. Finalize invoice

  3. Deliver final report 

What sets us apart?

  • Invested heavily into the latest technology to assist with streamlining processes and eliminating manual data entry

  • We run with little to no overhead

  • Very fast turnaround time! Quick as 3-5 days in certain rush situations

  • Very competitive fees!

  • We take pride in being responsive and meeting deadlines

Contact us today to get started on a Business Valuation!