Glossary · Reading the business
In short
A fixed regular payment made to employees, often monthly or bi-weekly, regardless of hours worked. Buyers care because it's a fixed operating expense that impacts the business's profitability and cash flow.
When reviewing the P&L, distinguish between owner's salary (which is often an add-back for SDE) and employee salaries. High employee salaries can indicate a well-staffed operation but also a significant fixed cost. Analyze historical trends to ensure the business can sustain its payroll post-acquisition.
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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