Glossary · Reading the business
In short
The total cost of sales and marketing efforts required to acquire a new customer. Understanding this metric is crucial for evaluating the efficiency of the business's growth strategies and future profitability.
Analyze the business's CAC during due diligence by reviewing marketing and sales expenses relative to new customer numbers. A high CAC relative to customer lifetime value can indicate unsustainable growth or inefficient marketing. You need to know if the business can profitably attract new customers 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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