Glossary · Reading the business
In short
A financial report summarizing a business's revenues, expenses, and net profit or loss over a specific period. Buyers care because it’s a primary tool to understand historical profitability and the business’s ability to generate cash.
This is one of the most critical documents during due diligence. You'll analyze several years of P&Ls, often with add-backs, to determine the true owner earnings and project future performance. Verify the P&L against tax returns and bank statements to ensure accuracy.
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.
Free · No documents · Usually same-day