Glossary · Reading the business
In short
This is an examination by tax authorities to verify the accuracy of a business's tax returns. It can uncover financial discrepancies or liabilities that impact the deal.
A prior tax audit on the seller's business could indicate past financial issues or aggressive accounting practices. During due diligence, review all tax returns and be wary of any red flags that might suggest unreported income or undisclosed liabilities. This helps you assess the true financial health.
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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