Glossary · Reading the business
In short
This is the system of recording, summarizing, and reporting financial transactions for a business. It's how you understand the company's past performance and current health.
You'll spend significant time reviewing the seller's financial accounting records (P&L, Balance Sheet) during due diligence. This data forms the basis for your projections and valuation. Understand how the seller's accounting practices might differ from standard GAAP.
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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