Glossary · Reading the business
In short
The potential tax consequences of a business decision or transaction. Understanding these is crucial because they directly impact your profitability and cash flow after the acquisition.
During due diligence, analyze how the acquisition structure (asset vs. stock purchase) will affect your future tax obligations and the business's cash flow. Using retirement funds for your equity injection also carries specific tax implications that need careful planning. Always consult with a tax professional.
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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