Glossary · Reading the business
In short
Money or assets paid out from a business or retirement account that is subject to income tax for the recipient.
When reviewing a business's financials, understand if past "owner distributions" were taxable to the owner and how that impacts the owner's personal tax burden. For your own post-acquisition planning, any profits you take out of your new business will likely be a taxable distribution, impacting your personal cash flow and tax strategy.
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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