Glossary · Reading the business
In short
These are recent sales data for similar businesses or properties in the same industry or geographic area. They help determine a fair market value for the business you're buying.
Appraisers and lenders use market comparables (or "comps") to cross-reference the proposed purchase price and ensure it aligns with recent transactions. If your deal's price is significantly higher than comps, you'll need a strong justification. This impacts the business valuation and loan approval.
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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