Glossary · Reading the business
In short
Arbitrage is profiting from price differences of the same asset in different markets. While less common in small business M&A, understanding market inefficiencies can reveal opportunities.
In small business acquisitions, you might see a form of arbitrage if you can acquire a business at a lower valuation (e.g., a distressed sale) and then significantly increase its value through operational improvements or by selling off underutilized assets. It's about finding value discrepancies.
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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