Glossary · People and paperwork
In short
Describes when personal and business funds or assets are mixed together, making it impossible to distinguish them. This is a major red flag for buyers and lenders as it obscures the true financial health of the business.
Sellers who co-mingle funds complicate your due diligence and financial analysis, making it difficult to accurately calculate SDE or EBITDA since personal expenses might be hidden as business expenses. Insist on clear separation of all business and personal accounts and meticulously scrutinize bank statements for any irregular or unclear transactions.
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.
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