Glossary · Reading the business
In short
A valuation method that uses ratios derived from recent sales of comparable businesses to estimate a target business's value. Common multiples include multiples of EBITDA or SDE.
Your business valuation will likely incorporate market multiples, comparing the target business to similar transactions. It's crucial to understand the nuances of these comparisons, ensuring the comparable businesses truly match in size, industry, and geography, to arrive at a fair market 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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