Glossary · Reading the business
In short
This occurs when you buy a business for less than the fair value of its identifiable net assets. It suggests you've found a bargain, often due to a distressed seller or unique market conditions.
While rare, negative goodwill means you're getting more assets than you paid for. It's a strong indicator of a bargain purchase. You'll need to properly account for this difference, usually by reducing certain non-current assets or recognizing a gain on the purchase.
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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