Glossary · Reading the business
In short
Money earned by an employee or owner but paid out later, often to reduce current tax liability. As a buyer, you need to understand if these liabilities will transfer with the business.
For a seller, deferred compensation may be an add-back if it's discretionary and won't continue under new ownership. Ensure the deal structure accounts for any outstanding obligations, otherwise, you could inherit a significant future payout liability.
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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