. . . thanks to BOTH of the parties foolishly relying on advice from their respective CPA. Here's an excerpt from an SBA seminar. (Fundamentals of Business Valuation for SBA Loans)

• Notice, below, the warning about CPAs..

What is a qualified source? [Valuation]
A “qualified source” is an individual who regularly receives compensation for business valuations and is accredited by one of the following recognized organizations:

1. Accredited Senior Appraiser (ASA) accredited through the American Society of Appraisers;
2. Certified Business Appraiser (CBA) accredited through the Institute of Business Appraisers;
3. Accredited in Business Valuation (ABV) accredited through the American Institute of Certified Public Accountants;
4. Certified Valuation Analyst (CVA) accredited through the National Association of Certified Valuation Analysts; and

A new change to the SOP in 2014 is that a CPA without one of the credentials listed above is not considered a qualified source.

• AND MY PERSPECTIVE: Be wary of valuations from business brokers, too.

• Even if the SBA changes its policy, it is NOT a good idea to get valuations from anyone not fully and properly trained and accredited by a legitimate source.