Glossary · Reading the business
In short
A financial report showing a business's revenues, costs, and profits over a period. It's crucial for understanding the historical profitability and cash flow generation of the target business.
Lenders and buyers scrutinize the P&L to assess a business's financial health, identifying trends in sales, expenses, and net income. You'll need to analyze several years of P&Ls to spot inconsistencies, potential add-backs, and ensure the reported profit aligns with the seller's claims.
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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