Glossary · Reading the business
In short
These are dealings between the business and its owner, owner's family, or other entities they control. Buyers must scrutinize these to ensure they reflect true market value and aren't inflating or deflating profits.
During due diligence, always look for related-party transactions, such as excessive rent paid to an owner-owned property or salaries to family members not actively working. These often appear as "add-backs" to adjust EBITDA or SDE, but ensure they are legitimate and at arm's length to get an accurate picture of the business's true profitability.
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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