Glossary · Reading the business
In short
This refers to the wages, salaries, and other compensation paid to employees for their work. It's a major operating expense for most businesses.
When analyzing a business, you'll scrutinize employment income on the Profit and Loss Statement to understand staffing costs and efficiency. Be sure to differentiate between owner compensation (which is often an add-back) and regular employee payroll when evaluating true cash flow.
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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