Glossary · Reading the business
Forensic review
In short
This is a detailed, investigative examination of financial records to uncover discrepancies, fraud, or misrepresentation. A buyer might commission one during due diligence if red flags appear in the seller's financials.
What it means in a deal
If during "due diligence" you uncover inconsistencies or suspicious activity in the seller's financial statements, a "forensic review" might be necessary. This goes beyond standard accounting, aiming to identify any "intentional misrepresentation" or "omission of material facts" that could impact the business's value or your loan eligibility.
Related terms
Common questions about Forensic review
- What is the typical timeframe for SBA loan application review by the lender?
- How thoroughly does the SBA review the business valuation report provided by the lender?
- Is an environmental review needed if my SBA 7(a) loan includes real estate?
- What specific elements of a franchise agreement does the SBA review to determine eligibility?
- What specific environmental review is required for commercial real estate included in an SBA loan?
- What specific due diligence is required for an unlisted franchise agreement lacking SBA formal review?
Defined by CapBench 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.
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