Glossary · Reading the business
In short
This is necessary repairs or upkeep that have been put off. It's important because it represents hidden costs you'll have to pay after closing to keep the business operating, impacting your post-acquisition cash flow.
When you're doing due diligence, look for signs of deferred maintenance in equipment, vehicles, or the physical premises. Get an inspection to quantify these costs. Factor these into your total project costs or negotiate a lower purchase price to cover the future expense.
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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