Glossary · Reading the business
In short
This measures how many customers a business keeps over time. High client retention indicates a stable revenue stream and a strong customer base, which is crucial for your business's future cash flow.
During due diligence, you must analyze client concentration and churn rates. A 7(a) lender will look closely at this, especially if a few clients represent a large portion of revenue. Ensure you understand existing client relationships and have a plan to maintain them to protect your post-acquisition 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.
Free · No documents · Usually same-day