Glossary · Reading the business
In short
These are the ongoing costs of running a business that aren't directly tied to producing a product or service, like rent, utilities, and administrative salaries. Understanding overhead helps you predict future profitability.
In an acquisition, you'll scrutinize the business's Profit and Loss Statement for consistent overhead expenses. Identify any discretionary or owner-related overhead "add-backs" that won't continue under your ownership. High or uncontrolled overhead can quickly erode profits, especially if sales projections are missed.
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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