Glossary · Reading the business
In short
This refers to the total compensation a business pays to its employees, including salaries, wages, bonuses, and taxes withheld. It's a significant and recurring expense.
Review the business's payroll records carefully during due diligence to verify employee costs and identify any discrepancies. Understand how payroll impacts cash flow and if any owner's payroll needs to be added back for SDE calculations. Accurate payroll is essential for operations.
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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