Glossary · Reading the business
In short
Performance metrics, ratios, or standards common to a specific industry, used to compare a business's operational and financial health against its peers. They highlight areas of strength or weakness.
Lenders and appraisers use industry benchmarks to assess the target business's performance relative to its sector. As a buyer, you should analyze these benchmarks during due diligence to identify opportunities for improvement or red flags that might impact future profitability and loan repayment capacity.
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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