Glossary · Reading the business
In short
Formal records summarizing a business's financial activities and position. These include the Profit & Loss Statement, Balance Sheet, and Cash Flow Statement, which are crucial for due diligence.
You'll spend significant time reviewing the business financial statements during due diligence. Lenders rely on these to assess the business's health and repayment capacity. Scrutinize them for accuracy, consistency, and potential add-backs to understand the true 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.
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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