{"ok":true,"canonical_url":"https://dealroom.so/glossary/forensic-review","api_url":"https://dealroom.so/api/public/glossary/forensic-review","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":"forensic-review","term":"Forensic review","group":"Reading the business","definition":"This is a detailed, investigative examination of financial records to uncover discrepancies, fraud, or misrepresentation. A buyer might commission one during due diligence if red flags appear in the seller's financials.","what_it_means":"If during \"due diligence\" you uncover inconsistencies or suspicious activity in the seller's financial statements, a \"forensic review\" might be necessary. This goes beyond standard accounting, aiming to identify any \"intentional misrepresentation\" or \"omission of material facts\" that could impact the business's value or your loan eligibility.","url":"https://dealroom.so/glossary/forensic-review","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"}],"related_questions":[{"question":"What is the typical timeframe for SBA loan application review by the lender?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-timeframe-for-sba-loan-application-review-by-the-lender"},{"question":"How thoroughly does the SBA review the business valuation report provided by the lender?","url":"https://dealroom.so/sba-7a/questions/how-thoroughly-does-the-sba-review-the-business-valuation-report-provided-by-the-lender"},{"question":"Is an environmental review needed if my SBA 7(a) loan includes real estate?","url":"https://dealroom.so/sba-loans/basics/is-an-environmental-review-needed-if-my-sba-7-a-loan-includes-real-estate"},{"question":"What specific elements of a franchise agreement does the SBA review to determine eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-elements-of-a-franchise-agreement-does-the-sba-review-to-determine-eligibili"},{"question":"What specific environmental review is required for commercial real estate included in an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-specific-environmental-review-is-required-for-commercial-real-estate-included-in-an-s"},{"question":"What specific due diligence is required for an unlisted franchise agreement lacking SBA formal review?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-for-an-unlisted-franchise-agreement-lacking-sba-fo"}]},"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 — Forensic review","url":"https://dealroom.so/glossary/forensic-review","source_type":"DealRoom Data"}}