Glossary · Reading the business
In short
This refers to activities a business undertakes to innovate, develop new products or services, or improve existing ones. It's often an expense line item that can impact current profitability but drive future growth.
When reviewing a target business, understand if significant R&D expenses are necessary for its ongoing competitiveness or if they represent discretionary spending. High R&D can depress current profits, but cutting it might harm future growth. Analyze its historical impact on the business's valuation and projections.
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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