Glossary · Reading the business
In short
A capital gain is the profit you make from selling an asset (like a business) for more than you paid for it. This is a primary driver for sellers and a potential future benefit for you as a buyer.
When you eventually sell the business, the difference between your purchase price and the selling price will likely be a capital gain. Understanding how capital gains are taxed is crucial for your long-term investment strategy. For sellers, maximizing capital gain is often a key motivation, impacting deal structure.
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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