Glossary · Reading the business
In short
This refers to all the debts and obligations a business owes. Understanding these liabilities is crucial because you'll typically inherit them in an asset purchase, or entirely in a stock purchase.
During due diligence, you'll scrutinize the balance sheet and other records for current and long-term business liabilities, including accounts payable, loans, and potential legal claims. Unidentified liabilities can significantly impact the deal's value and your future cash flow, so look for hidden issues.
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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