Glossary · Reading the business
In short
The potential for losses due to inadequate or failed internal processes, people, systems, or external events. It's about how the business runs day-to-day.
When evaluating a business, assess its operational risks. For example, is the business heavily reliant on a single supplier or a few key employees? Are its systems outdated? High operational risk can lead to instability post-acquisition and impact cash flow, making it harder to service debt. Identify these early in due diligence.
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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