Glossary · Reading the business
In short
An accounting term for reducing the value of an asset or eliminating an uncollectible debt from a company's books, often reducing taxable income. Buyers should understand what's truly a business expense versus a discretionary owner perk.
Sellers often "write off" personal expenses through the business to reduce their taxable income, which will show up as expenses on the P&L. As a buyer, you need to identify these discretionary expenses as "add-backs" to accurately determine the true owner earnings (SDE) and the business's profitability. Reclassifying these is critical for underwriting.
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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