Glossary · Reading the business
In short
These are typical financial ratios or performance metrics for businesses within a specific industry. They provide a benchmark to compare the target business against its peers.
Use industry averages during due diligence to spot red flags or opportunities. If the target business deviates significantly from the average in key areas like gross margin or operating expenses, dig deeper to understand why. This helps validate the business's health.
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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