Glossary · Reading the business
In short
This is how a business manages its income and expenses to control profitability. Good P&L management means a healthier business you're buying.
As a buyer, you'll scrutinize the seller's Profit and Loss Statement during due diligence to see how well they've managed costs and revenue. Look for consistent trends and identify any areas where you can improve efficiency post-acquisition. Poor P&L management might hide underlying issues or opportunities.
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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