Glossary · Reading the business
In short
These are costs incurred by a business to generate revenue, ranging from salaries and rent to supplies and marketing. Understanding these is crucial for assessing profitability.
During due diligence, scrutinize all business expenses on the Profit and Loss Statement. Look for "add-backs" that are truly discretionary or non-recurring to accurately calculate the business's true owner earnings and cash flow.
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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