Glossary · Reading the business
Enterprise Value
In short
This is the total value of a company, including both its equity and debt, minus any cash. It represents what it would cost to buy the entire business, taking on its debt but keeping its cash.
What it means in a deal
Enterprise Value is a common metric used in business valuations, especially when comparing companies with different capital structures. It gives you a holistic view of the business's worth, irrespective of how it's financed. Your lender and appraiser will consider this in their analysis.
Related terms
Common questions about Enterprise 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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