Glossary · Reading the business
In short
A financial statement summarizing a business's revenues, costs, and expenses over a period, showing its net profit or loss. Buyers care because it's the primary document to assess a business's historical profitability.
The P&L, also known as an Income Statement, is fundamental to your due diligence. You'll analyze several years of P&Ls to understand revenue trends, cost structure, and ultimately, the business's cash flow available for debt service and owner compensation. Identify any one-time or owner-related expenses for add-backs.
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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