Glossary · Reading the business
In short
This refers to any event or change that significantly interrupts a business's normal operations, potentially hurting revenue or increasing costs. As a buyer, you must minimize this during and after the acquisition.
A 7(a) loan requires demonstrating a smooth transition plan to avoid operational disruption. Lenders are wary of deals where the owner is critical and leaving without a clear succession. Assess the potential for key employee departures or system changes during due diligence and build mitigation strategies into your plan.
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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