Glossary · Reading the business
In short
These are the core documents (P&L, Balance Sheet, Cash Flow Statement) that show a business's past financial performance. You need them to understand profitability and health.
Lenders require several years of financial statements to assess the business's ability to repay the loan. You'll use them during due diligence to verify revenue, expenses, and assets, often adjusting for owner compensation (add-backs) to calculate SDE or EBITDA.
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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