Glossary · Reading the business
In short
Financial statements that project a business's future performance based on assumptions, often adjusting historical results for anticipated changes or one-time events. Buyers use these to forecast the business's profitability under new ownership.
As a buyer, you'll create pro forma financials to show the lender how the business will perform after you acquire it, including your salary and new debt service. These are critical for demonstrating repayment capacity. Be realistic with your assumptions, as lenders scrutinize these projections heavily.
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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