Glossary · Reading the business
Market volatility
In short
This describes how quickly and unpredictably market conditions or asset prices can change. High volatility can impact your business's revenue, costs, or the value of its assets.
What it means in a deal
Market volatility is a risk factor for any business. Understand how external economic shifts, industry trends, or raw material price fluctuations could affect the target business's cash flow projections. Your due diligence should include stress-testing the business model against potential market downturns or rapid changes.
Related terms
Common questions about Market volatility
- 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?
- How does a lender evaluate the market value of collateral when there are limited comparable sales?
- 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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