Glossary · Reading the business
In short
Earnings before interest, taxes, depreciation, and amortization. A standard measure of what the business earns from operations.
EBITDA strips out financing decisions, tax structures, and accounting-driven non-cash charges to give you a view of what the business actually generates from its core operations. It's the starting point for most business valuations and the number sellers use in marketing materials. For lenders, EBITDA is the foundation for calculating DSCR — they'll recast it further by adding back legitimate owner expenses to get adjusted EBITDA or SDE.
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 2026-06-14 · 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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