Glossary · Reading the business
In short
Obligations a business may incur in the future, such as potential lawsuits, warranty claims, or environmental cleanup costs. These are crucial to identify during due diligence as they can impact your post-acquisition cash flow.
During due diligence, your legal counsel must uncover any potential future liabilities through contract review, litigation searches, and environmental assessments. An asset purchase typically limits the assumption of seller liabilities, but some can still transfer, requiring careful structuring of the buy-sell agreement.
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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