SBA and Conventional Financing Valuations

Back

New and growing small businesses are significant parts of the mix of ingredients providing fuel for our local, regional and national economies. One of the drivers of this growth lies in the ability of these companies to obtain capital from lenders and their Small Business Administration (SBA) partners.

Strategic Valuation Group has positioned itself to assist capital providers in making sound lending decisions. We are a full service valuation firm that routinely assists business brokers and intermediaries, banks, SBA lending officers, consultants, attorneys, CPAs, and their respective business clients with business valuation services. Our professional team possesses both technical valuation expertise and direct experience working in businesses. This marriage of valuation expertise and real world business experience enables us to deliver our services in a more meaningful manner. It also has us rooted in the fundamental behavioral values of Quality and Customer Satisfaction.

In our daily work, Strategic Valuation Group routinely develops and uses financial modeling and forecasting techniques in determining future cash flows available to the capital providers of a business and the risks associated with them. In this determination we consider:

• Riskiness of the industry.
• Organization and management capacity of the business.
• Sales and marketing practices and plan.
• Product or service lines.
• Strength of its financial statements.
• The company's competitive position in its market.
• Other determinants of the risk associated with the return stream.

In essence, the value conclusion assesses the strength of the company's business plan and operating experience. Thus, our valuation conclusions adequately assist the lender in their assessment of the potential credit decision.

All valuations prepared for business brokers, SBA and conventional lenders, and the like, also contain a 'justification of purchase price' computation, which is a proof that the cash flow expected to be generated by the company would pay back the outside debt capital providers, as well as provide an adequate return to the equity holders.