{"ok":true,"canonical_url":"https://dealroom.so/glossary/pro-forma-financials","api_url":"https://dealroom.so/api/public/glossary/pro-forma-financials","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":"pro-forma-financials","term":"Pro Forma Financials","group":"Reading the business","definition":"Financial statements that project a business's future performance based on assumptions, often adjusting historical results for anticipated changes or one-time events. Buyers use these to forecast the business's profitability under new ownership.","what_it_means":"As a buyer, you'll create pro forma financials to show the lender how the business will perform after you acquire it, including your salary and new debt service. These are critical for demonstrating repayment capacity. Be realistic with your assumptions, as lenders scrutinize these projections heavily.","url":"https://dealroom.so/glossary/pro-forma-financials","official_sources":[],"related":[{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"Besides financials, what other key documents are needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/besides-financials-what-other-key-documents-are-needed-for-an-sba-7-a-loan"},{"question":"What if my personal liquidity is low, but the business's financials are very strong?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-the-business-s-financials-are-very-strong"},{"question":"How important is my personal credit score if the business I'm buying has strong financials?","url":"https://dealroom.so/sba-7a/questions/how-important-is-my-personal-credit-score-if-the-business-i-m-buying-has-strong-financials"},{"question":"What specific diligence must a lender perform on seller's financials for a 7(a) acquisition loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-diligence-must-a-lender-perform-on-seller-s-financials-for-a-7-a-acquisition"},{"question":"What if the seller's representations about the business's financials turn out to be significantly inaccurate during diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-s-representations-about-the-business-s-financials-turn-out-to-be-signif"}]},"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 — Pro Forma Financials","url":"https://dealroom.so/glossary/pro-forma-financials","source_type":"DealRoom Data"}}