Estimate vs appraisal
| Estimate (calculator, broker opinion) | Formal appraisal | |
|---|---|---|
| Output | A range based on market multiples | A written opinion of value to a defined standard |
| Who does it | Anyone | Credentialed appraisers (e.g., ASA, CVA, ABV, CBA) |
| Relied on by | You, for planning | Lenders, courts, IRS, co-owners |
| Cost | Free to modest | Professional fees |
| When | Before deciding to sell; responding to an offer | SBA financing, estate and gift tax, divorce, disputes, buy-sell triggers |
The SBA trigger
Under SBA SOP 50 10 8, the buyer’s lender needs an independent business valuation from a qualified source when the financed amount minus appraised real estate and equipment exceeds $250,000, or when buyer and seller are related; summaries of SOP 50 10 8.1 (effective October 1, 2026) say an independent valuation will be required on every change of ownership. If the appraisal comes in below your price, the loan shrinks. See SBA loans and your sale.
What our estimate is and is not
Our calculator applies published closed-sale multiples for your trade and adjusts within the range using a disclosed heuristic. It is an educational estimate, not an appraisal, and we never call it one.
Know your number first
Sourced range for your trade in 60 seconds, no email needed.
Frequently asked questions
Do I need a business appraisal to sell?
Not legally, but if your buyer uses an SBA loan the lender will usually order an independent valuation, and estates, divorces and partner buyouts often require one.
Where can I find a business valuation near me?
Look for credentialed appraisers (ASA, CVA, ABV or CBA designations). Check their experience in your trade and ask for a sample report.
Is a broker opinion of value an appraisal?
No. It is a marketing estimate, useful for pricing but not relied on by lenders or courts.
Sources
- QuickRead - SBA SOP 50 10 8 valuation guidance for 7(a) loans (accessed 2026-09-23)
- SBA Information Notice 5000-880695 - Issuance of SOP 50 10 8.1 (effective Oct 1, 2026) (accessed 2026-09-23)
- SBA SOP 50 10 (lender and development company loan programs) (accessed 2026-09-23)