Glossary · Reading the business
Market Comparable
In short
These are recent sales data for similar businesses, used to estimate a target business's value. Buyers use them to check if the asking price aligns with what similar businesses actually sold for.
What it means in a deal
Lenders often require an independent appraisal that heavily relies on market comparables. You should examine these comps yourself during due diligence to ensure they are truly comparable in size, industry, and location.
Related terms
Common questions about Market Comparable
- How does a lender evaluate the market value of collateral when there are limited comparable sales?
- What are the requirements for assigning secondary market loans through SBA Form 1088?
- How does a lender determine the fair market value of business equipment used as collateral?
- How does the SBA verify the fair market value of assets contributed as equity injection?
- If a borrower contributes equipment as equity, how does the lender verify its fair market value?
- How does the SBA evaluate the fair market value of goodwill in a business acquisition for financing?
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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