Structured for SBA 7(a) Requirements
SBA 7(a) lenders routinely require an independent valuation for business acquisition financing. Our Professional reports are structured to support lender pre-screening per SOP 50 10 7 with the depth of analysis expected by underwriters.
The Scenario
A buyer is acquiring a business for $2.5M and needs SBA 7(a) financing. The lender requires an independent business valuation as part of the underwriting package. SBA Standard Operating Procedures (SOP 50 10 7) require lenders to obtain an independent business valuation for acquisition loans when goodwill exceeds $250,000 and the seller is not an employee. The buyer needs a professional report that meets these requirements — fast.
How VEMLogic Helps
- Full three-approach valuation (Income, Market, Asset) at Professional tier
- Income approach with capitalized earnings and documented discount rate build-up
- Market approach with comparable transaction multiples from Pepperdine, Damodaran, and EDGAR databases
- Asset approach with adjusted net asset value
- SDE and EBITDA normalization with add-back documentation per SBA underwriting standards
- Debt service coverage analysis for acquisition loan structuring
- Goodwill quantification to determine independent valuation requirement threshold
- Clear documentation of methodology and data sources suitable for lender review
- Same-day priority delivery to meet deal timelines
Key Metrics in Your Report
Business value
SDE multiple
Debt service coverage
Revenue trends
Asset coverage ratio
Industry risk factors
Goodwill allocation
VEMLogic provides Calculations of Value. Reports are not certified appraisals and do not constitute USPAP-compliant valuations.
Related Use Cases
Acquisition Evaluation
Acquiring a business without an independent valuation is like buying a house without an appraisal. Our reports provide the analytical foundation to evaluate whether a deal makes financial sense at the asking price.
Pre-Sale Preparation
Business owners preparing for a sale need an independent baseline valuation to set realistic expectations, identify value drivers, and maximize their exit price. Without a current valuation, you are negotiating blind.
Strategic Planning
Understanding your current business value is the foundation for every meaningful growth, investment, and capital allocation decision. You cannot improve what you do not measure.
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