Glossary · Reading the business
In short
This is a detailed, investigative examination of financial records to uncover discrepancies, fraud, or misrepresentation. A buyer might commission one during due diligence if red flags appear in the seller's financials.
If during "due diligence" you uncover inconsistencies or suspicious activity in the seller's financial statements, a "forensic review" might be necessary. This goes beyond standard accounting, aiming to identify any "intentional misrepresentation" or "omission of material facts" that could impact the business's value or your loan eligibility.
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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