{"ok":true,"canonical_url":"https://dealroom.so/glossary/overhead","api_url":"https://dealroom.so/api/public/glossary/overhead","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":"overhead","term":"Overhead","group":"Reading the business","definition":"These are the ongoing costs of running a business that aren't directly tied to producing a product or service, like rent, utilities, and administrative salaries. Understanding overhead helps you predict future profitability.","what_it_means":"In an acquisition, you'll scrutinize the business's Profit and Loss Statement for consistent overhead expenses. Identify any discretionary or owner-related overhead \"add-backs\" that won't continue under your ownership. High or uncontrolled overhead can quickly erode profits, especially if sales projections are missed.","url":"https://dealroom.so/glossary/overhead","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"}],"related_questions":[]},"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 — Overhead","url":"https://dealroom.so/glossary/overhead","source_type":"DealRoom Data"}}