Glossary · Reading the business
In short
These are the financial obligations or debts a business currently owes, such as accounts payable, outstanding loans, or deferred revenue.
During due diligence, meticulously identify all existing liabilities of the target business. In an asset purchase, you typically avoid assuming most of the seller's liabilities, but verify this. For a stock purchase, you inherit everything, so understanding these is critical to your cash flow and deal structure.
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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