Glossary · Reading the business
In short
When a business relies heavily on one or a few suppliers for critical goods or services. This is a risk because losing a key supplier can cripple operations and impact your ability to serve customers.
Evaluate supplier relationships during due diligence. If one supplier accounts for over 20-30% of your costs, that's a red flag. Investigate the health of that supplier, the terms of their agreement, and the ease of finding alternatives. High concentration might require renegotiating terms or diversifying before closing.
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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