Glossary · Reading the business
In short
This combines the financial statements of a parent company and all its subsidiaries into a single report. It gives you a complete picture of the economic performance and financial position of an entire group of related entities.
If the seller operates multiple related entities that contribute to the business's cash flow, insist on consolidated financial statements. This prevents the seller from hiding liabilities or shifting expenses between entities. Review these to ensure all relevant revenues and expenses are accounted for together.
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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