Glossary · Reading the business
In short
The state of being no longer useful or desired because something newer or more efficient exists. In inventory, it means goods are difficult to sell.
During due diligence, assess the risk of inventory obsolescence, especially for businesses with rapidly changing products or technology. Obsolete inventory can lead to significant write-downs, directly impacting the business's profitability and asset value post-acquisition.
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.
Free · No documents · Usually same-day