Glossary · Reading the business
In short
The total worth of goods a business holds for sale, raw materials, or work-in-progress. It's a key asset on the balance sheet and impacts working capital.
For a business acquisition, you'll need to verify the reported inventory value during due diligence, often with a physical count. Overstated inventory inflates assets and can hide operational issues. Understand how it's valued (e.g., historical cost).
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.
Free · No documents · Usually same-day