{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-flow-post-acquisition","api_url":"https://dealroom.so/api/public/glossary/cash-flow-post-acquisition","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cash-flow-post-acquisition","term":"Cash flow post-acquisition","group":"Reading the business","definition":"The projected net cash generated by the business after all operating expenses, debt service, and owner compensation are paid, once you take over. This is the ultimate measure of the business's ability to support the loan and your salary.","what_it_means":"This is the most critical financial projection. You need to model the business's cash flow realistically, accounting for new debt payments, your salary, and any changes you anticipate. Lenders use Debt Service Coverage Ratio (DSCR) to ensure the business can comfortably make loan payments.","url":"https://dealroom.so/glossary/cash-flow-post-acquisition","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"}],"related_questions":[{"question":"Could a significant drop in the buyer's post-acquisition projected cash flow kill SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/could-a-significant-drop-in-the-buyer-s-post-acquisition-projected-cash-flow-kill-sba-7-a-"},{"question":"If I am buying out a partner, does the SBA require the business to pass a cash flow test post-acquisition?","url":"https://dealroom.so/sba-7a/questions/if-i-am-buying-out-a-partner-does-the-sba-require-the-business-to-pass-a-cash-flow-test-po"},{"question":"Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-restrictions-on-the-use-of-cash-flow-projections-for-an-sba-7-a-acquisition-"},{"question":"Can a business with a history of negative cash flow still qualify for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-a-business-with-a-history-of-negative-cash-flow-still-qualify-for-an-sba-7-a-acquisiti"},{"question":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"question":"How can an SBA 7(a) loan help with ongoing cash flow for my business?","url":"https://dealroom.so/sba-loans/basics/how-can-an-sba-7-a-loan-help-with-ongoing-cash-flow-for-my-business"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Cash flow post-acquisition","url":"https://dealroom.so/glossary/cash-flow-post-acquisition","source_type":"DealRoom Data"}}