Glossary · Reading the business
In short
Past financial records of the business, including Profit & Loss Statements and Balance Sheets, typically for the last three years. These are essential to understand the business's performance trends.
Lenders use these statements, along with tax returns, to verify revenue, expenses, and profitability. You'll scrutinize them during due diligence to identify trends, inconsistencies, and "add-backs" that reveal the true owner earnings. This forms the foundation for your business valuation and cash flow projections.
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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