Glossary · Reading the business
In short
These are funds taken out of a business by its owner, not as salary or dividends, but as direct draws. They are critical for understanding how much cash the business truly generates for an owner.
When evaluating a business, owner's withdrawals are a key 'add-back' used to calculate Seller's Discretionary Earnings (SDE). They represent cash available to a working owner. Ensure you get clear documentation of all withdrawals during due diligence to accurately assess the business's true profitability and your potential income.
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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