Glossary · Reading the business
In short
These are possible future financial obligations or risks that the business might incur. Identifying them during due diligence helps you assess the true cost of the business and negotiate protections against future surprises.
Look for potential liabilities like outstanding warranty claims, environmental issues, undisclosed debts, or pending legal actions. Your due diligence should include reviewing contracts, permits, and financial records. Negotiate escrow agreements or indemnifications to cover these risks, especially for environmental concerns which may require a Phase I Environmental Site Assessment.
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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