SBA Business Valuations and SBA Equipment Appraisals
Many current and future business owners rely on loans from the Small Business Administration (SBA) to help finance their business goals. At Peak Business Valuation, we specialize in providing SBA business valuations and SBA equipment appraisals for lenders across the United States.
Small businesses are vital to growth and innovation in the United States.
Our economy was built by small business owners and will always continue to rely on small business owners. At Peak Business Valuation, business appraiser, we have the honor of working with more than 100 SBA lenders across the country. These banks and non-bank SBA lenders provide the necessary SBA financing for individuals and business owners looking to build, buy, or expand their business. In our effort to support SBA bank lenders across the country, we have made it our goal to help lenders close SBA loans faster through Peak’s SBA business valuation process.
SBA Business Valuations
Why use Peak for SBA-Compliant Business Valuations and SBA Equipment Appraisals?
Relationship-focused
Peak’s mission is to help build businesses that thrive. Not only are we dedicated to helping small businesses succeed, but also SBA lenders suceed. The Peak Business Valuation team acts as a resource to you throughout the discovery, underwriting, and post-closing phases of the SBA loan process. Our proactive approach in meeting and exceeding your needs is our top priority.
Accurate
Accurate SBA business valuations are key to helping you build a successful SBA lending program. To ensure your success, we guarantee work of the highest accuracy and professionalism. A certified valuation specialist at Peak Business Valuation completes all of our SBA business valuations and SBA equipment appraisals.
Fast
We understand your need for quick results. We pride ourselves in providing accurate SBA business valuations with rapid delivery times so you can close your loans quickly. Peak Business Valuation’s average turnaround time for an SBA business valuation is an average of 5 business days. That is nearly twice as fast as our competitors.
What does Peak’s valuation process look like?
We want to help ensure the success of your SBA lending institution. As such, Peak takes several steps to help complete SBA valuations and SBA equipment appraisals in an accurate and timely manner to help close your loans faster.
1. Engage: Determine the client’s needs and gather needed documents.
2. Analyze: Review company financials and perform industry and economic research.
3. Prepare: Build the valuation model and determine the value.
4. Finalize: Deliver the SBA business valuation report or SBA equipment appraisal and discuss.
5. Connect: Peak Business Valuation is here to help you and your SBA clients further. We are happy to make introductions to trusted advisors such as bookkeepers, fractional executives, and more.
Peak’s Credentials:
At Peak, all our SBA business valuations meet the Uniform Standards of Professional Appraisal Practice (USPAP) requirements. Because we know compliance is crucial in the SBA lending process, our business valuation experts guarantee that our SBA business valuations meet the SBA’s SOP requirements.
Peak Business Valuation follows the SBA Standard Operating Procedures 50 1-5(k), which states:
“If the amount being financed (including any 7(a), 504, seller, or other financings) minus the appraised value of the real estate and/or equipment is greater than $250,000 or if there is a close relationship between the buyer and seller (for example, transactions between family members or business partners), the lender must obtain an independent business appraisal from a qualified source.”
Here at Peak Business Valuation, we have a team of qualified professionals. All our business valuation reports are prepared and signed by a certified and accredited valuation professional.
Common Documents Requested for an SBA Business Valuation
- Three to Four Years of Business Tax Returns
- Interim Balance Sheets and Income Statements for the Business
- If available, these should be on the same accounting basis as the tax returns or company-prepared financials
- Forecasted Financial Statements (two years if applicable)
- Purchase Agreements (Including Real Estate Purchase Agreements)
- Credit Memo
- Commitment Letter
- AR Aging Schedule
- If available, the schedule should be the same date as the interim financials
- AP Aging Schedule
- If available, the schedule should be the same date as the interim financials
- Franchise Agreements
- Commercial Lease Agreements
SBA Machinery & Equipment Appraisals
Peak Business Valuation also provides machinery & equipment appraisals for SBA lenders across the country. A machinery and/or equipment appraisal is an independent and unbiased opinion of the value of tangible assets as of a specific date.
Peak guarantees the highest quality appraisals on all our engagements. The equipment appraisal report is prepared by a Certified Machinery and Equipment Appraiser (CMEA ). All machinery & equipment appraisal reports at Peak are USPAP and SBA compliant. Compliance with these standards helps ensure proven appraisal methods are used to develop a defendable opinion of value.
Peak offers the following SBA machinery & equipment appraisal reports:
– Desktop Summary Report: This report provides a summary of the equipment appraised through research, pictures, descriptions, and phone interviews. A site visit is not made. A lender may order a desktop summary report when a visual identification by the appraiser is not needed. In many circumstances, a desktop report may be more time and cost-effective. This report is compliant with USPAP reporting standards.
– Summary Appraisal Report: This appraisal includes a site visit when the lender requests. The certified machinery and equipment appraiser visits the site where the machinery and equipment are located. They then complete a physical inspection and provide a summary of the assets valued. The report includes the classification of the fixed assets, i.e. year, make, model, and serial number. The appraiser also verifies the maintenance schedule, location, working condition, and use of the assets. This report is also compliant with USPAP reporting standards.
Our firm provides certified SBA machinery and equipment appraisals for various purposes and industries. The team at Peak Business Valuation has the knowledge and expertise to provide SBA equipment appraisals with speed, accuracy, and integrity.
Information Requested for a Machinery and Equipment Appraisal
Information for each Asset (most of this can be found on a Depreciation Schedule):
- Description/Manufacturer Details
- Model and/or Type
- Quantity
- Serial Numbers
- Size and additional information regarding the look of the equipment
- Year Purchased and Placed into Service
- Area and Location
- Gross Value and the Accumulated Depreciation Value
- Pictures
*We can perform a site inspection if needed
Frequently Asked Questions
What is an SBA business valuation?
An SBA business valuation is an independent valuation that determines the fair market value of a business being financed through an SBA business loan. It helps lenders, buyers, and sellers determine whether the purchase price is supported by the company’s financial performance, assets, market conditions, and risk.
When is an SBA business valuation required?
An SBA business valuation is required in certain SBA change-of-ownership transactions, including many business acquisitions financed through the SBA 7(a) loan program. Whether an independent valuation is required depends on the transaction structure and current SBA requirements. Your SBA lender can determine whether your loan requires an SBA-compliant business valuation.
Who can perform an SBA business valuation?
An SBA business valuation should be prepared by a qualified, independent business valuation professional with experience valuing privately held businesses. Choosing an experienced valuation firm helps ensure the report complies with SBA requirements and provides a well-supported conclusion of fair market value. At Peak Business Valuation, every SBA business valuation is prepared and signed by a credentialed valuation professional.
How much does an SBA business valuation cost?
The cost of an SBA business valuation depends on factors such as the size of the business, the complexity of the transaction, and the scope of work required. At Peak Business Valuation, most SBA business valuations start around $2,500, with larger or more complex engagements costing more. Your valuation fee will be clearly outlined before work begins.
How long does an SBA business valuation take?
Peak Business Valuation typically completes most SBA business valuations within five business days after receiving the necessary financial information. More complex businesses or transactions may require additional time. We understand the importance of closing deadlines and prioritize responsive communication and timely turnaround without compromising quality.
What documents are needed for an SBA business valuation?
Most SBA business valuations require three years of business tax returns, financial statements, interim financial statements, depreciation schedules, and information about the company’s operations, ownership structure, customers, and assets. Depending on the transaction, additional documents—such as purchase agreements, equipment lists, leases, or organizational documents—may also be requested. Providing complete and organized documentation helps streamline the business valuation process and avoid delays.
How is an SBA business valuation performed?
An SBA business valuation analyzes the company’s financial performance, cash flow, assets, liabilities, industry conditions, market data, and risk factors. Depending on the facts and circumstances of the engagement, the valuation professional may apply the Income, Market, Asset Approach or a combination of approaches—to determine fair market value.
Can an SBA business valuation affect loan approval?
Yes. An SBA business valuation helps determine whether the purchase price is supported by fair market value. If the purchase price significantly exceeds fair market value, the lender may require the transaction to be restructured, additional equity to be contributed, or the purchase price to be renegotiated before approving the loan.
Why do SBA lenders choose Peak Business Valuation?
SBA lenders choose Peak Business Valuation for our experience, responsive communication, and consistent turnaround times. Our credentialed valuation professionals complete more than 1,400 valuation engagements annually and prepare independent SBA business valuations that comply with SBA requirements. We help lenders meet closing deadlines while delivering well-supported reports they can rely on.
What is the difference between an SBA business valuation and an SBA business appraisal?
The terms business valuation and business appraisal are often used interchangeably. The SBA uses the term business valuation in its lending requirements, but both refer to an independent analysis of a company’s fair market value prepared by a qualified valuation professional.
Get Started Today
Peak Business Valuation is here to help ensure the success of your SBA loan program. We seek to minimize your risk by providing an independent and unbiased conclusion on business value and collateral value.
For new SBA lenders, we offer 50.0% off your first SBA business valuation with Peak Business Valuation. Over 35 regional and national SBA lenders work with Peak Business Valuation on a weekly or monthly basis. Give us a call and experience why they chose Peak to meet their SBA business valuation and SBA equipment appraisal needs.
