Glossary · Reading the business
In short
A basic good or raw material that is interchangeable with other goods of the same type. For a buyer, selling a commodity means you compete primarily on price, making it harder to differentiate your business.
Businesses that sell commodities often have lower profit margins and limited pricing power. As a buyer, evaluate if the business has any unique value proposition, customer relationships, or operational efficiencies that protect it from pure price competition. Look for ways to add value beyond the basic product.
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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