Glossary · Reading the business
In short
This is the maximum output a business can achieve with its current resources. It tells you if the business can grow without major new investment.
When evaluating a business, assess if its current equipment, staffing, and processes can handle increased demand. Limited capacity might mean significant post-acquisition capital expenditures, which impacts your Cash flow after debt service and Working capital. Look for bottlenecks.
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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