Glossary · Reading the business
In short
Individuals or entities connected to the seller or target business through ownership, family ties, or common control. Transactions with related parties often require extra scrutiny.
During due diligence, always look for transactions between the seller's business and "related parties," such as family members or other businesses they own. These transactions might not be at "arm's length" and could inflate expenses or reduce revenue, impacting the true profitability of the business. Lenders will also scrutinize related party debt.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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.
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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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