Glossary · Reading the business
In short
The estimated period an asset is expected to be functional and productive for the business. Buyers care because it impacts depreciation, future capital expenditures, and the overall long-term value and operational efficiency of the assets you're acquiring.
During due diligence, review the age and condition of major equipment and other tangible assets to estimate their remaining useful life. This helps you project future capital expenditure needs, ensuring the business's cash flow won't be immediately drained by replacing worn-out assets shortly after acquisition. Factor this into your financial projections.
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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