Glossary · Reading the business
Depreciated Book Value
In short
The value of an asset recorded on a company's balance sheet after accounting for accumulated depreciation. It reflects the asset's original cost minus its wear and tear over time.
What it means in a deal
When evaluating the assets of a business, the depreciated book value is an accounting figure. It often differs from the fair market value or liquidation value. For an acquisition, you care more about an asset's utility and market value than its book value for collateral purposes.
Related terms
Common questions about Depreciated Book Value
- What if the primary business assets are specialized machinery with limited resale value?
- How does the SBA evaluate the value of contributed equipment for equity injection?
- What if the value of my stock portfolio (for equity injection) drops before closing?
- When acquiring a business, can an SBA loan finance 100% of the goodwill value?
- How does the SBA typically value goodwill in a business acquisition for lending purposes?
- How does a lender determine the fair market value of business equipment used as collateral?
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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