Business Sale and M&A Valuation
A business sale valuation states what a private company is worth to a buyer in a sale outside the SBA process, such as a brokered deal, a private sale, or a lower-middle-market acquisition. FMV weights transaction comparables and documents every add-back.
Signed by a credentialed analystFairMarketValue
Coastline Dental Group, PC
At a glance
- Basis
- Fair market value or investment value, as the engagement requires
- Prepared by
- A credentialed FMV valuation analyst
- Deliverable
- Signed report (PDF)
- Used by
- Banks and lenders, accounting firms, financial advisors, attorneys
- Delivered to
- The ordering bank's or firm's vault and the client's vault
When it is needed
- A conventional acquisition loan where the bank wants an independent view of price.
- An owner with an offer in hand who needs to know whether it is fair.
- A client preparing to go to market who needs a defensible asking range.
What the report contains
- Market, income, and asset approaches, weighted toward transaction comparables
- Normalized earnings with an add-back schedule
- A stated value range for the transaction
- Industry and comparable-transaction exhibits
Last updated October 24, 2026
The FMV Lender Standard
Included in every bank engagement at no additional cost.
Peer benchmark exhibit
The borrower against private companies of its size on margins, leverage, debt service coverage, and working capital.
Annual reassessment
Twelve months after the valuation, we re-run it on the borrower's latest financials and send credit administration an updated assessment for the annual review.
Public-record screen
Suits, liens, judgments, and bankruptcies on the business, flagged for follow-up.
Guaranty support
If SBA questions our valuation at guaranty purchase, we provide a support memo, the workfile, and time with your team or SBA reviewers.
Industry research
Industry analysis in each report, with research access for credit administration and loan review.
Who uses it
Standards and sources
- Revenue Ruling 59-60
- Factors considered in valuing closely held businesses
- AICPA SSVS (VS Section 100)
- Development and reporting standards
- Private transaction data
- Comparable sale multiples
Documents we need
- Financial statements and tax returns, three to five years
- Any offers, letters of intent, or broker materials
How an engagement works
Scope
We confirm the purpose, standard of value, valuation date, and addressee, then issue the engagement letter.
Intake
You or your client upload documents against a checklist. Open items stay visible until the file is complete.
Analysis
A credentialed analyst prepares the valuation and signs the conclusion.
Delivery
The signed PDF goes to your vault and your client's. We keep the workfile for later questions.
Business sale valuation questions
What is a business sale valuation?
A business sale valuation is an independent opinion of what a private company is worth to a buyer, prepared for a sale outside the SBA process. FairMarketValue (FMV) reconciles the market, income, and asset approaches, with emphasis on comparable private transactions, and states a value range for the deal.
How is a business sale valuation different from a broker's opinion of value?
A business sale valuation is signed by a credentialed analyst under professional standards and is independent of the sale. A broker's opinion of value is prepared by a party paid on the transaction and is not a valuation engagement.
Can a bank rely on an FMV business sale valuation for an acquisition loan?
Yes, for conventional acquisition and C&I credit. FMV addresses the report to the bank and includes the FMV Lender Standard. SBA 7(a) change-of-ownership loans require the separate SBA 7(a) Business Valuation.
What documents does a business sale valuation require?
A business sale valuation typically requires three to five years of financial statements and tax returns, plus any offers, letters of intent, or broker materials for the transaction.
How is the fee for a business sale valuation set?
FMV quotes the fee for a business sale valuation after reviewing the scope. The fee is fixed before work starts and does not depend on the conclusion of value.
Trust and reliability
SOC 2 Type II and ISO 27001 audits are underway. Our security program is documented in the FMV Trust Center.
Get a fixed-fee quote
Tell us the purpose, the company, and the valuation date. We confirm scope and quote a fixed fee before work begins.