Glossary · Reading the business
In short
This describes a situation where the acquired business relies heavily on another business or entity for its financial health. This can be a red flag for buyers, indicating concentration risk.
The SBA scrutinizes financial interdependence, especially if the seller has other businesses that supply or buy from the target business. This creates "affiliation" concerns and concentration risk. You need to identify any such relationships during due diligence and understand how they impact the business's standalone viability and revenue streams post-acquisition.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live 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.
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.
Free · No documents · Usually same-day