{"ok":true,"canonical_url":"https://dealroom.so/glossary/arbitrage","api_url":"https://dealroom.so/api/public/glossary/arbitrage","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":"arbitrage","term":"Arbitrage","group":"Reading the business","definition":"Arbitrage is profiting from price differences of the same asset in different markets. While less common in small business M&A, understanding market inefficiencies can reveal opportunities.","what_it_means":"In small business acquisitions, you might see a form of arbitrage if you can acquire a business at a lower valuation (e.g., a distressed sale) and then significantly increase its value through operational improvements or by selling off underutilized assets. It's about finding value discrepancies.","url":"https://dealroom.so/glossary/arbitrage","official_sources":[],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"multiple","term":"Multiple","url":"https://dealroom.so/glossary/multiple"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"market-analysis","term":"Market analysis","url":"https://dealroom.so/glossary/market-analysis"}],"related_questions":[]},"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 — Arbitrage","url":"https://dealroom.so/glossary/arbitrage","source_type":"DealRoom Data"}}