Glossary · Reading the business
In short
This refers to highly liquid assets easily convertible to cash, like short-term government bonds or money market funds. For a buyer, knowing what counts as cash equivalent helps assess a business's true liquidity.
When reviewing a target business's balance sheet, differentiate between actual cash and cash equivalents. These can quickly be turned into cash to cover short-term liabilities. Understand a seller's true cash position for working capital needs post-acquisition.
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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