Glossary · Reading the business
In short
This is money paid out from a business's profits to its owners. It's distinct from salary or other compensation for work performed.
In an acquisition, you'll analyze past distributions to understand how much cash the prior owner was taking out and if the business can support both debt service and your desired owner compensation. Excessive distributions pre-sale can artificially depress cash in the business.
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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