{"ok":true,"canonical_url":"https://www.capbench.com/glossary/distribution","api_url":"https://www.capbench.com/api/public/glossary/distribution","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"distribution","term":"Distribution","group":"Reading the business","definition":"This is money paid out from a business's profits to its owners. It's distinct from salary or other compensation for work performed.","what_it_means":"In an acquisition, you'll analyze past distributions to understand how much cash the prior owner was taking out and if the business can support both debt service and your desired owner compensation. Excessive distributions pre-sale can artificially depress cash in the business.","url":"https://www.capbench.com/glossary/distribution","official_sources":[],"related":[{"slug":"owner-earnings","term":"Owner earnings","url":"https://www.capbench.com/glossary/owner-earnings"},{"slug":"sde","term":"SDE","url":"https://www.capbench.com/glossary/sde"},{"slug":"cash-flow","term":"Cash flow","url":"https://www.capbench.com/glossary/cash-flow"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://www.capbench.com/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"Can life insurance be used to ensure fair distribution of assets among non-active heirs in a family business?","url":"https://www.capbench.com/sba-7a/questions/can-life-insurance-be-used-to-ensure-fair-distribution-of-assets-among-non-active-heirs-in"}]},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — Distribution","url":"https://www.capbench.com/glossary/distribution","source_type":"CapBench Data"}}