Glossary · Reading the business
In short
These are financial reports (P&L, Balance Sheet, Cash Flow) that have been reviewed and verified by an independent CPA. They offer the highest level of assurance regarding financial accuracy.
While not always available for small businesses, audited financials provide the most reliable view of a company's historical performance. If the seller has them, your CPA will scrutinize them for anomalies. If not, you'll rely on reviewed or compiled statements, and tax returns, requiring more thorough due diligence.
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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