Glossary · Reading the business
Comparable Sales
In short
These are recent sales of similar businesses in your industry and market. They provide crucial benchmarks for valuing the target business and ensuring your offer is reasonable.
What it means in a deal
Business appraisers and your M&A advisor will use comparable sales data to establish the fair market value of the business you're acquiring. This market-based valuation method helps validate the asking price and supports the lender's underwriting decision. Always review the data to understand the valuation rationale.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Comparable Sales
- How does a lender evaluate the market value of collateral when there are limited comparable sales?
- Are proceeds from personal investment sales eligible for equity injection?
- Can I get an SBA 7(a) loan if my business is a startup with no sales yet?
- How does the SBA evaluate the eligibility of an applicant business involved in multi-level marketing or pyramid sales schemes?
- How does a lender ensure timely and accurate reporting of 7(a) loan sales on the secondary market to the SBA?
- What are the SBA's reporting requirements for 7(a) lenders regarding sales of guaranteed loan portions on the secondary market?
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.
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