Glossary · Reading the business
In short
Payments made from a business's profits or assets to its owners. These are not wages or salaries but a return on their investment.
When reviewing financials, analyze distributions to owners to understand how much cash the business historically generated for its owners. Be wary of excessive distributions that might have starved the business of working capital or hidden true profitability. These are often "added back" to calculate SDE or EBITDA.
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.
Free · No documents · Usually same-day