Glossary · Reading the business
In short
This refers to how ownership shares and profits are allocated among partners or shareholders in a business.
If you're buying into a Partnership or LLC with other owners, or forming one, the Equity distribution defines who owns what percentage and how profits are shared. This affects your Personal financial statement and the allocation of Buyer equity in the deal.
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.
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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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