Glossary · Reading the business
In short
Internal controls are the processes and procedures a business uses to safeguard assets, ensure accuracy of financial data, and promote operational efficiency. Strong controls reduce fraud risk.
During due diligence, assess the seller's internal controls. Weak controls can hide financial irregularities or make the business vulnerable to theft and error. As a buyer, you need to understand these systems to identify potential risks and plan for improvements 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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