Glossary · Reading the business
In short
These are modifications made to a leased property by the tenant to suit their business needs. They are assets that typically revert to the landlord at the end of the lease.
When buying a business that leases its space, assess the value and remaining useful life of any Leasehold improvement. Understand who owns them and if you'll be compensated for them if you move or if the lease ends. Factor their depreciation into your financial projections, as they affect the business's Tangible asset value.
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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