Glossary · Reading the business
In short
Non-essential expenses paid by the business that primarily benefit the owner, such as personal car leases, travel, or discretionary salaries. These are added back to show true profitability.
When evaluating a small business, you'll "add back" owner benefits to calculate the Seller's Discretionary Earnings (SDE) or Owner Earnings. This adjusted profit figure gives a clearer picture of the business's true cash flow and its ability to cover your debt service and provide you a salary.
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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