Glossary · Reading the business
In short
Costs incurred by a business that are not directly related to producing goods or services, such as office rent, salaries for support staff, and legal fees. These are overhead costs.
When reviewing financial statements, analyze administrative expenses to see if they are reasonable and necessary for the business's operations. Identify any discretionary or owner-specific expenses that can be "added back" to increase owner earnings.
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.
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