Glossary · Reading the business
In short
This refers to the normal, day-to-day operations and transactions of a business. Lenders assess whether the business has been operating in its ordinary course to understand its true financial performance and avoid unusual, one-off events.
During due diligence, you'll examine financial statements to ensure the business's revenue and expenses reflect its typical operations. Any transactions outside the ordinary course, like large, unusual asset sales, might be add-backs but need careful scrutiny to understand recurring cash flow. Your purchase agreement will also typically require the seller to continue operating in the ordinary course until closing.
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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