Glossary · Reading the business
Blue sky
In short
This refers to the intangible value of a business beyond its tangible assets, often representing goodwill, brand recognition, or future earning potential. As a buyer, you care because this is what you're paying for when the purchase price exceeds asset value.
What it means in a deal
In an acquisition, blue sky is essentially the goodwill component of the purchase price, which SBA loans can finance. It's crucial to understand the drivers of this intangible value and ensure it's supported by the business's historical earnings and future projections. A business valuation will often quantify this amount.
Related terms
Common questions about Blue sky
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.