Glossary · Reading the business
In short
This financial modeling technique assesses how changes in key variables impact a business's financial outcomes. It helps you understand the risks associated with different assumptions about the business's future performance.
Use sensitivity analysis to test your cash flow projections. What happens to profitability if revenue drops by 10% or if a major expense increases? This helps you identify the most critical assumptions and understand the business's resilience under various scenarios. It's a key part of your due diligence.
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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