Glossary · Reading the business
In short
What legal responsibility the business has for past or future actions. You care because these can turn into costly lawsuits or fines, impacting the business's value and your cash flow.
During due diligence, look for any pending lawsuits, past regulatory fines, or potential product liability issues. Your attorney will review contracts and past incidents. Any significant liability can reduce the business's valuation or become a deal-breaker if it poses an unacceptable risk to your future operations.
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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