Glossary · Reading the business
In short
These are the fundamental components of a balance sheet: assets are what the business owns, liabilities are what it owes, and net worth (or equity) is the difference. They show a company's financial position at a point in time.
You'll analyze these on the target business's balance sheets during due diligence to understand its financial health and collateral value. Your personal financial statement will also detail your own assets, liabilities, and net worth, which lenders use to assess your capacity to repay the loan.
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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