Glossary · Reading the business
In short
These are the financial reports—typically a Balance Sheet and Profit and Loss Statement—prepared at the close of a business's fiscal year. They are crucial for understanding a business's historical performance.
Lenders will require several years of year-end financial statements from the seller to underwrite your loan. These documents, along with tax returns, are fundamental for calculating SDE or EBITDA and assessing the business's repayment capacity. Scrutinize them during due diligence to confirm the business's financial health.
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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