Glossary · Reading the business
In short
The process of identifying, assessing, and mitigating potential risks that could negatively impact a business's operations or finances.
As a buyer, your due diligence involves extensive risk management. You're evaluating operational, financial, market, and legal risks of the target business. A strong risk management plan, including key man insurance or contingency plans for critical suppliers, will reassure your lender and protect your investment.
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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