Glossary · Reading the business
In short
This is the profit a business has left after all expenses, including federal income taxes, have been paid. It's the bottom line on the income statement, showing the true profitability available to owners.
While lenders often focus on SDE or EBITDA for repayment capacity, understanding net income after taxes gives you a clearer picture of the business's actual taxable profit. This figure is critical for your personal tax planning post-acquisition and for understanding the historical tax burden of the business. Don't confuse it with SDE or owner earnings.
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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