Скачать или смотреть Maintenance Capital Expenditures in Business Valuations for SBA 7a Lending

Accurate estimation of maintenance capital expenditures (CapEx) is critical in business valuations for SBA 7(a) loan purposes, particularly when using the capitalization of earnings method. While EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a common valuation proxy due to its pre-debt, pre-tax simplicity, it excludes CapEx, a recurring cash outflow. This omission can overstate a company’s cash-generating ability, inflating valuations and risking unsustainable SBA 7(a) loans. This white paper examines maintenance CapEx’s role, EBITDA’s flaws, and estimation methods, emphasizing SBA 7(a) valuation reliability.

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