Glossary · Reading the business
In short
The framework of rules, practices, and processes by which a business is directed and controlled. This impacts decision-making, accountability, and the overall management structure you'll inherit.
Understand the existing governance model during due diligence, especially if acquiring a larger business or one with multiple owners. This includes bylaws, operating agreements, and decision-making authority. For a small business, it often means understanding how the current owner makes decisions and how responsibilities are delegated. You'll need to establish your own model post-acquisition.
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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