Glossary · Reading the business
In short
The cumulative profits a business has kept rather than distributed to shareholders as dividends. It represents capital reinvested in the business, building its equity.
On the balance sheet, retained earnings show how much profit the business has accumulated over time. While primarily an accounting figure, it reflects a history of profitability and financial strength. It's part of understanding the overall health and equity position of the business you're buying.
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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