Glossary · Reading the business
In short
An independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps a business accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
While a small business you're buying might not have a formal internal audit department, the concept of internal controls is crucial. During due diligence, you'll effectively perform your own "internal audit" by scrutinizing financial records and operational processes to identify risks, inefficiencies, and potential fraud. Pay close attention to how the seller manages cash and inventory.
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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