{"ok":true,"canonical_url":"https://dealroom.so/glossary/acquisition-cost","api_url":"https://dealroom.so/api/public/glossary/acquisition-cost","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-cost","term":"Acquisition Cost","group":"Doing the deal","definition":"This is the total price you pay to buy a business, including the purchase price, working capital, and all associated fees. It's the full financial outlay for the entire transaction.","what_it_means":"Your acquisition cost forms the basis for your financing structure. It includes the business's purchase price, required working capital, lender fees, legal expenses, and other closing costs. Ensure you account for every expense to avoid unexpected shortfalls.","url":"https://dealroom.so/glossary/acquisition-cost","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"}],"related_questions":[{"question":"Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-franchise-transfer-fee-in-an-acquisition"},{"question":"Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?","url":"https://dealroom.so/sba-7a/questions/can-closing-costs-such-as-legal-and-accounting-fees-be-included-in-the-total-project-cost-"},{"question":"Can an SBA 7(a) loan finance the cost of purchasing a commercial vehicle fleet as part of a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-cost-of-purchasing-a-commercial-vehicle-fleet-as-part-of-a"},{"question":"For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?","url":"https://dealroom.so/sba-7a/questions/for-an-acquisition-with-significant-goodwill-what-maximum-goodwill-percentage-can-the-sba-"},{"question":"Does the SBA require an independent business appraisal for a business acquisition costing $400,000?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-an-independent-business-appraisal-for-a-business-acquisition-costing-"},{"question":"Can an SBA 7(a) loan cover the cost of inventory for a business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-the-cost-of-inventory-for-a-business"}]},"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 Cost","url":"https://dealroom.so/glossary/acquisition-cost","source_type":"DealRoom Data"}}