Glossary · Reading the business
In short
This refers to predictable ups and downs in a business's revenue or expenses based on the time of year. Buyers must understand how seasonality impacts cash flow and working capital.
Businesses with significant seasonal fluctuation require careful financial analysis to ensure they can service debt during slower periods. Look at monthly or quarterly Profit and Loss Statements to identify patterns. You'll need sufficient working capital to bridge lean months.
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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