Glossary · Reading the business
In short
The earnings of a business, adjusted for non-recurring expenses, owner's salary, and other non-operational items. This is the true earnings power for a new owner.
Lenders and buyers use Adjusted Net Operating Income (or SDE/EBITDA) to understand the business's true profitability and its ability to cover new debt. You'll add back discretionary owner expenses, one-time costs, and excessive salaries to the reported net income. This is the foundation for calculating DSCR.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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