{"ok":true,"canonical_url":"https://dealroom.so/glossary/acquisition","api_url":"https://dealroom.so/api/public/glossary/acquisition","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"acquisition","term":"Acquisition","group":"Doing the deal","definition":"This is simply the act of buying an existing business. For you, it means taking over an operational entity, its assets, and often its liabilities, with the goal of continuing or growing its operations.","what_it_means":"Most SBA 7(a) loans are used for business acquisitions, either asset purchases or stock purchases. Understanding the type of acquisition is crucial as it dictates what you're buying, your liability exposure, and the due diligence required. Your lender and attorney will guide you on the best structure for your deal.","url":"https://dealroom.so/glossary/acquisition","official_sources":[],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"Does the SBA 7(a) program require a minimum loan amount for business acquisitions?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-7-a-program-require-a-minimum-loan-amount-for-business-acquisitions"},{"question":"How do SBA loan rates compare to conventional bank loan rates for business acquisitions?","url":"https://dealroom.so/sba-7a/questions/how-do-sba-loan-rates-compare-to-conventional-bank-loan-rates-for-business-acquisitions"},{"question":"How does the SBA evaluate goodwill in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-goodwill-in-a-business-acquisition"},{"question":"How does the SBA define \"management experience\" for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-management-experience-for-a-business-acquisition"},{"question":"Who typically owns the life insurance policy on a seller post-acquisition?","url":"https://dealroom.so/sba-7a/questions/who-typically-owns-the-life-insurance-policy-on-a-seller-post-acquisition"},{"question":"What duration of post-acquisition operating expenses can working capital typically cover?","url":"https://dealroom.so/sba-7a/questions/what-duration-of-post-acquisition-operating-expenses-can-working-capital-typically-cover"}]},"caveats":["Definitions represent DealRoom'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":"DealRoom.so Glossary — Acquisition","url":"https://dealroom.so/glossary/acquisition","source_type":"DealRoom Data"}}