Glossary · Reading the business
Market multiple(Multiple)
In short
This is a valuation metric derived from comparing a business to similar businesses that have recently sold. It's often expressed as a multiple of EBITDA or SDE.
What it means in a deal
While not the sole valuation method for SBA loans, market multiples provide a quick benchmark for a business's worth. Understand how the seller's asking price compares to industry multiples, but remember that unique business factors can justify deviations. A good appraisal will consider multiple valuation approaches.
Related terms
Common questions about Market multiple
- What if the business assets are located in multiple states, requiring multiple UCC filings?
- How is life insurance structured when a business has multiple key owners?
- What if the business I'm acquiring operates across multiple distinct industries?
- How does common management between multiple businesses trigger affiliation for SBA size purposes?
- What if my business has multiple locations; can all of them be covered?
- What are the requirements for assigning secondary market loans through SBA Form 1088?
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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