{"ok":true,"canonical_url":"https://dealroom.so/glossary/p-l","api_url":"https://dealroom.so/api/public/glossary/p-l","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":"p-l","term":"P&L","aka":"Profit and Loss Statement","group":"Reading the business","definition":"A financial statement summarizing a business's revenues, costs, and expenses over a period, showing its net profit or loss. Buyers care because it's the primary document to assess a business's historical profitability.","what_it_means":"The P&L, also known as an Income Statement, is fundamental to your due diligence. You'll analyze several years of P&Ls to understand revenue trends, cost structure, and ultimately, the business's cash flow available for debt service and owner compensation. Identify any one-time or owner-related expenses for add-backs.","url":"https://dealroom.so/glossary/p-l","official_sources":[],"related":[{"slug":"cash-flow-statement","term":"Cash flow statement","url":"https://dealroom.so/glossary/cash-flow-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"expense","term":"Expense","url":"https://dealroom.so/glossary/expense"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"}],"related_questions":[{"question":"Can a tenant improvement allowance from a new landlord count towards my equity injection for a leasehold acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-tenant-improvement-allowance-from-a-new-landlord-count-towards-my-equity-injection-f"},{"question":"Can an SBA 7(a) loan cover buying land for my business to build on later?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-buying-land-for-my-business-to-build-on-later"},{"question":"What if the business I'm buying has existing legal disputes or pending lawsuits?","url":"https://dealroom.so/sba-loans/basics/what-if-the-business-i-m-buying-has-existing-legal-disputes-or-pending-lawsuits"},{"question":"Why do lenders typically prefer larger amounts for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/why-do-lenders-typically-prefer-larger-amounts-for-sba-7-a-loans"},{"question":"What level of environmental due diligence is required for leasehold improvements only, without real estate acquisition?","url":"https://dealroom.so/for-lenders/questions/what-level-of-environmental-due-diligence-is-required-for-leasehold-improvements-only-with"},{"question":"What are the specific eligibility requirements for a franchise agreement that lacks a formal review or listing on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-eligibility-requirements-for-a-franchise-agreement-that-lacks-a-form"}]},"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 — P&L","url":"https://dealroom.so/glossary/p-l","source_type":"DealRoom Data"}}