Glossary · Reading the business
In short
These are the ongoing costs of running a business, such as rent, salaries, and utilities. Buyers must scrutinize operational expenses to accurately project future profitability and cash flow.
During due diligence, meticulously review the seller's Profit and Loss Statements to identify all operational expenses. Pay close attention to any "add-backs" proposed by the seller, ensuring they are truly non-recurring or discretionary and won't be part of your ongoing costs.
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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