Glossary · Reading the business
In short
Expenses a business deducts for tax purposes that don't always reflect true operating costs. You'll "add back" these non-recurring or discretionary items to get a clearer picture of profitability.
Sellers often run personal expenses through the business to reduce their tax burden. When analyzing financials, identify these write-offs and add them back to profit to see the true owner earnings. These "add-backs" are crucial for understanding the business's actual profitability for a new owner.
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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