{"ok":true,"canonical_url":"https://dealroom.so/glossary/year-end-financial-statements","api_url":"https://dealroom.so/api/public/glossary/year-end-financial-statements","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":"year-end-financial-statements","term":"Year-end financial statements","group":"Reading the business","definition":"These are the financial reports—typically a Balance Sheet and Profit and Loss Statement—prepared at the close of a business's fiscal year. They are crucial for understanding a business's historical performance.","what_it_means":"Lenders will require several years of year-end financial statements from the seller to underwrite your loan. These documents, along with tax returns, are fundamental for calculating SDE or EBITDA and assessing the business's repayment capacity. Scrutinize them during due diligence to confirm the business's financial health.","url":"https://dealroom.so/glossary/year-end-financial-statements","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"}],"related_questions":[{"question":"Do I need to provide personal financial statements for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-provide-personal-financial-statements-for-an-sba-7-a-loan"},{"question":"What types of personal financial statements are required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-personal-financial-statements-are-required-for-an-sba-7-a-loan"},{"question":"What types of personal financial statements are typically required for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/what-types-of-personal-financial-statements-are-typically-required-for-an-sba-7-a-loan-app"},{"question":"Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?","url":"https://dealroom.so/sba-7a/questions/can-unverified-or-inconsistent-financial-statements-from-the-seller-cause-my-sba-loan-to-b"},{"question":"What kind of financial statements does the SBA 7(a) loan application require from my business?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-financial-statements-does-the-sba-7-a-loan-application-require-from-my-busine"},{"question":"What specific due diligence does the lender perform on the target business's financial statements for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-specific-due-diligence-does-the-lender-perform-on-the-target-business-s-financial-sta"}]},"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 — Year-end financial statements","url":"https://dealroom.so/glossary/year-end-financial-statements","source_type":"DealRoom Data"}}