Glossary · Reading the business
Internal valuation
In short
A valuation performed by the buyer or their advisor using available financial data. Buyers care because it helps them determine a fair offer price and understand the business's worth independent of the seller's asking price.
What it means in a deal
While an SBA lender will require a third-party appraisal for deals over $500k, your internal valuation is crucial for initial offer structuring. Use it to compare against the asking price and identify key value drivers or red flags before engaging professional appraisers.
Related terms
Common questions about Internal valuation
- Can an SBA loan finance a partner buyout if we've only used an internal valuation?
- What if a lender's internal loan review discovers a potential eligibility issue post-closing?
- Can a lender accept contributed equity in the form of existing machinery valued by an internal appraisal?
- What are common reasons for significant delays in the SBA's *internal* review and authorization of a loan?
- What information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran?
- How long does the SBA's internal review and approval process take after the lender submits my complete application?
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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