BUSINESS TRANSACTION VALUATION SERVICES

Independent Business Valuation for Acquisitions, Sales & SBA Financing

Business Valuation Advisors provides independent business valuation and transaction analysis for buyers, sellers, lenders, and business owners evaluating privately held company transactions. Engagements may involve acquisitions, potential sales, SBA financing, succession, or other ownership transitions. BVA analyzes normalized earnings, cash flow, market evidence, balance-sheet items, working capital, debt-service capacity, and transaction-specific terms to develop a well-supported conclusion of value and help clients understand the financial economics of the transaction.

  • Acquisition & Sale Valuation
  • SBA Financing & Debt-Service Analysis
  • Normalized Earnings, Working Capital & Transaction Economics

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TRANSACTION & FINANCING NEEDS
When an Independent Business Valuation Matters
Business Acquisitions

Independent valuation and transaction analysis for buyers evaluating privately held businesses, including normalized earnings, market evidence, working capital, capital expenditures, debt capacity, and the financial terms of the proposed acquisition.

Business Sales & Exit Planning

Independent valuation support for business owners considering a sale, succession, or exit, including analysis of normalized earnings, market positioning, enterprise and equity value, and financial factors that may affect transaction expectations.

SBA 7(a) Financing

Independent business valuation and financing analysis for SBA 7(a)-financed acquisitions, including purchase-price reasonableness, normalized cash flow, debt-service capacity, working capital, transaction structure, and lender-directed valuation requirements when applicable.

Lender-Directed Valuations

Independent business valuations prepared for lenders and financing participants when a transaction requires a qualified third-party valuation, with attention to the engagement scope, purchase-price analysis, financial performance, transaction structure, and lender-specific requirements.

Transaction & Debt-Service Analysis

Analysis of sustainable cash flow, debt-service coverage, financing assumptions, working capital, capital expenditures, and transaction structure to help buyers, sellers, and lenders evaluate whether the economics of a proposed transaction are supportable.

Quality of Earnings & Financial Due Diligence

Focused financial due diligence for acquisitions and financing, including Quality of Earnings, EBITDA and SDE normalization, Proof of Cash, working-capital analysis, customer and revenue trends, and identification of financial issues that may affect valuation, financing, or transaction structure.

DEAL ECONOMICS THAT MATTER
Financial Analysis Beyond the Purchase Price

A transaction can appear attractive at the headline purchase price and still fail economically if sustainable earnings, working capital, capital expenditures, financing, or balance-sheet items are misunderstood. BVA evaluates the financial drivers that influence value, cash flow, debt capacity, and the amount of capital ultimately required to complete and support the transaction.

  • Sustainable EBITDA and SDE normalization
  • Working capital requirements and the working-capital peg
  • Replacement capital expenditures and reinvestment needs
  • Quality of Earnings, Proof of Cash, and financial due diligence
  • Debt-service coverage and financing capacity
  • Enterprise-to-equity bridge and transaction structure
Valuation Is Only One Part of the Financing Decision

For SBA and acquisition financing, a supportable purchase price does not by itself determine whether a transaction works. BVA evaluates normalized cash flow, debt-service coverage, working-capital needs, replacement capital expenditures, buyer equity, seller financing, debt assumptions, and other transaction terms to understand the capital required at closing and whether the post-close economics are supportable. This analysis helps buyers, sellers, and lenders connect valuation with financing capacity and transaction structure.

Preparing for an SBA Acquisition? Start With the Free Readiness Toolkit

Organize the financial records and diligence items that may matter before valuation, Quality of Earnings, or lender review begins. BVA’s free SBA Valuation & Quality of Earnings Readiness Toolkit includes a 14-page preparation guide and companion Readiness Tracker available in Excel and Google Sheets.
GET THE FREE SBA READINESS TOOLKIT

Professional Credentials Across the BVA Team

Frequently Asked Questions About Acquisitions, Sales & SBA Valuation
BVA provides independent business valuation and transaction analysis for privately held company acquisitions, potential business sales, SBA-financed transactions, lender-directed valuations, succession transactions, and other ownership changes. Depending on the engagement, the analysis may also address normalized earnings, working capital, capital expenditures, debt-service capacity, Quality of Earnings, Proof of Cash, and other financial issues relevant to the proposed transaction.
Enterprise value generally reflects the value of the operating business before considering how it is financed. Equity value reflects the value attributable to the owners after considering relevant cash, interest-bearing debt, and other non-operating assets or liabilities. BVA reconciles these amounts so buyers, sellers, and lenders can understand how the operating-business value translates into the equity value involved in the transaction.
An SBA-related business valuation may be obtained or directed by the lender to satisfy applicable financing requirements and support the reasonableness of the transaction value. The valuation is prepared as an independent professional analysis rather than as an advocacy model for the buyer or seller. BVA evaluates the subject business, normalized financial performance, relevant valuation approaches, balance-sheet considerations, and transaction terms within the scope required for the assignment.
Proof of Cash compares recorded revenue and cash activity with bank deposits and other available financial records to help evaluate whether reported operating results are supported by actual cash collections. Depending on the scope and available documentation, BVA may use Proof of Cash procedures to identify timing differences, unusual deposits, potential revenue-quality issues, or inconsistencies that warrant further diligence. It is a financial-analysis procedure and is not presented as an audit or forensic examination unless separately engaged for that scope.
A Quality of Earnings (QoE) analysis evaluates the sustainability and reliability of reported earnings rather than simply accepting historical EBITDA, SDE, or net income at face value. Depending on the scope, BVA may analyze revenue trends, customer concentration, recurring versus nonrecurring items, proposed add-backs, cash conversion, working capital, and other financial issues that may affect valuation or financing. QoE can be particularly useful when the buyer, lender, or transaction size warrants a deeper level of financial due diligence.
Yes. BVA can provide an independent valuation and transaction analysis before a business is marketed or negotiated for sale. The work may include normalized earnings, enterprise and equity value, market evidence, working-capital considerations, debt and cash treatment, and identification of financial issues that could affect buyer diligence or transaction expectations. This can help an owner enter the sale process with a more supportable understanding of value and the financial factors likely to matter in negotiations.
Yes. Seller notes, earnouts, rollover equity, buyer equity contributions, contingent payments, and other transaction terms can materially affect the economics of an acquisition or sale. BVA can analyze how these terms interact with cash flow, debt-service capacity, working capital, and value so the parties can better understand the financial consequences of the proposed structure.
Timing depends on the complexity of the business, the completeness of the financial records, the number of entities involved, and whether the engagement includes additional transaction analysis such as Quality of Earnings, Proof of Cash, working capital, or financing support. Once the scope and available information are reviewed, BVA can provide a realistic timeline for the specific assignment.
BVA evaluates the proposed purchase price in the context of normalized earnings, cash flow, market evidence, balance-sheet items, working capital, capital expenditures, debt-service capacity, and the transaction structure. The objective is not simply to determine a theoretical value, but to assess whether the price is financially supportable based on the economics of the business and the terms of the proposed transaction.
The information required depends on the transaction, but engagements commonly begin with historical financial statements, tax returns, current interim results, general-ledger detail, balance sheets, debt schedules, ownership information, and the proposed purchase or financing terms. When appropriate, BVA may also request bank statements, customer or revenue detail, working-capital information, capital-expenditure history, and documentation supporting proposed earnings adjustments. A focused information request is provided once the scope is established.
BVA reviews historical financial performance to identify adjustments that may be necessary to estimate sustainable earnings. Depending on the business, this may include owner compensation, personal or discretionary expenses, nonrecurring items, related-party transactions, unusual income or expenses, and other proposed add-backs. Material adjustments are evaluated based on the available support rather than automatically accepted, and the resulting normalized earnings are used in the valuation and transaction analysis as appropriate.
BVA analyzes the operating working capital required to support the business and compares it with the level expected to be delivered at closing. Depending on the transaction, this may include accounts receivable, inventory, accounts payable, accrued operating liabilities, customer deposits, and other operating current accounts. The analysis can help establish a normalized working-capital requirement or peg and identify whether additional buyer funding may be needed after closing.
BVA evaluates whether the business’s normalized cash flow can reasonably support the proposed financing structure. The analysis may consider principal and interest payments, debt-service coverage, working-capital needs, replacement capital expenditures, seller financing, buyer equity, and other recurring cash requirements. The objective is to connect the valuation with the financing reality of the transaction rather than evaluating purchase price in isolation.
Yes. BVA can prepare independent business valuations for lenders and financing participants when a transaction requires a qualified third-party valuation. The engagement scope is coordinated around the lender’s requirements and may include analysis of normalized financial performance, purchase-price reasonableness, valuation approaches, balance-sheet items, transaction structure, and other factors relevant to the financing decision.
BVA considers whether historical capital expenditures are sufficient to maintain the business’s operating capacity and whether future replacement or growth-related investment may be required. Depending on the business, the analysis may compare reported depreciation, historical capital spending, equipment age, maintenance requirements, and expected reinvestment needs. This helps avoid overstating sustainable cash flow when the business requires ongoing capital investment to support operations.
The first step is a confidential consultation to discuss the business, transaction structure, purpose of the valuation, financing considerations, timing, intended users, and information currently available. BVA can then determine the appropriate scope, identify any valuation or transaction issues that warrant additional analysis, and provide an engagement letter and focused document request.
Explore All Private Business Valuation Services
 

View BVA’s full range of private business valuation, transaction, tax, litigation, ownership, SBA, and financial diligence services.
Leveraged Buyout Advisory & LBO Analysis
 

Financial analysis for leveraged acquisitions, including normalized earnings, debt capacity, DSCR, working capital, capital structure, investment returns, and downside risk.
Quality of Earnings & Financial Due Diligence
 

Transaction-focused analysis of normalized EBITDA and SDE, Proof of Cash, working capital, and earnings quality.
Tax, Estate & Gift Valuation
 

Independent valuation for estate and gift tax matters, ownership transfers, succession planning, and closely held interests.
Partner Buyout & Ownership Valuation
 

Valuation support for partner exits, shareholder redemptions, buy-sell matters, and internal ownership transfers.
Machinery, Equipment & Asset Valuation
 

Independent appraisal of machinery, vehicles, equipment, and other tangible assets when asset values are material to an acquisition, financing, purchase price, collateral analysis, or transaction structure.

Discuss Your Acquisition, Sale or SBA Valuation

Whether you are evaluating a business acquisition, preparing for a sale, or financing a transaction through SBA or other acquisition debt, BVA can help determine the appropriate valuation and financial-analysis scope for the transaction.

Schedule a Confidential Consultation