Exit Strategies Insights

Industry insights, knowledge base and announcements for business owners and professional advisors

Business Valuation Insights

Valuations for SBA Business Acquisition Loans

Determining the value of a business is a key aspect of an SBA lender’s underwriting process for loan applications involving a business acquisition (change of ownership). According to SBA Standard Oprating Procedure 50-10-5(c), paragragh (i), page 179, for all business acquisition loans over $350,000, or whenever a buyer and seller have a close relationship, the lender must obtain an independent business valuation from a qualified source.  Examples of “close relationships” include transactions between: Employer-Employee; Family members; Co-Owners; and …

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Exit Strategies Joins National Business Valuation Group

Exit Strategies has joined forces with National Business Valuation Group, LLC, a consortium of independent business valuation and litigation support firms that have affiliated in order to provide clients with highest quality  professional expertise.  The relationship between offices allows each firm to provide its clients with technical, database, industry, geographic and consulting expertise that would not be available from typical business valuation firms.  Offices regularly communicate with each other regarding specific cases and valuation issues …

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Does Size Matter in Business Valuation?

As a business broker I hear lots of interesting comments and questions about the value of businesses. Recently a business owner said to me, “Peet’s Coffee, (Nasdaq:PEET) trades for 20 times earnings, so should I be able to sell my Mike’s Coffee Company for that?” It’s a great question. Besides brand recognition and the liquidity of public vs. private company shares, size is the obvious difference between Peet’s and Mike’s. So how much does the …

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