{"ok":true,"canonical_url":"https://dealroom.so/glossary/bargain-purchase","api_url":"https://dealroom.so/api/public/glossary/bargain-purchase","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":"bargain-purchase","term":"Bargain purchase","group":"Doing the deal","definition":"A bargain purchase happens when you acquire a business for a price significantly below its fair market value. This can result from a motivated seller, market inefficiencies, or unique buyer advantages.","what_it_means":"Identifying a bargain purchase requires thorough due diligence and a robust business valuation. While attractive, lenders will scrutinize why the price is so low to ensure no hidden liabilities or risks. Be ready to explain the rationale.","url":"https://dealroom.so/glossary/bargain-purchase","official_sources":[],"related":[{"slug":"negative-goodwill","term":"Negative goodwill","url":"https://dealroom.so/glossary/negative-goodwill"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"}],"related_questions":[{"question":"What documentation is required to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-request-a-guaranty-purchase-using-the-universal-purchase"},{"question":"What specific documentation must a lender include in a Universal Purchase Package (UPP) for a guaranty purchase?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-must-a-lender-include-in-a-universal-purchase-package-upp-for-"},{"question":"What documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-for-a-lender-to-request-a-guaranty-purchase-using-the-unive"},{"question":"What are the key elements a lender must include in a Universal Purchase Package (UPP) submission for guaranty purchase?","url":"https://dealroom.so/for-lenders/questions/what-are-the-key-elements-a-lender-must-include-in-a-universal-purchase-package-upp-submis"},{"question":"What specific documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-lender-to-request-a-guaranty-purchase-using-"},{"question":"How does the SBA process the guaranty payment to the secondary market investor (Purchaser) for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-process-the-guaranty-payment-to-the-secondary-market-investor-purchaser-f"}]},"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 — Bargain purchase","url":"https://dealroom.so/glossary/bargain-purchase","source_type":"DealRoom Data"}}