{"ok":true,"canonical_url":"https://dealroom.so/glossary/consolidated-entity","api_url":"https://dealroom.so/api/public/glossary/consolidated-entity","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":"consolidated-entity","term":"Consolidated Entity","group":"Reading the business","definition":"When an entity controls another, their financials are combined for reporting. This gives you a complete picture of the overall financial health and interconnectedness, crucial for assessing the true value of the business you're buying.","what_it_means":"For a business acquisition, you need to understand if the seller has other businesses whose financials are merged. This can hide or reveal liabilities and assets that impact the target business, so always request separate financials if possible, or understand the consolidation method.","url":"https://dealroom.so/glossary/consolidated-entity","official_sources":[],"related":[{"slug":"capital-structure","term":"Capital Structure","url":"https://dealroom.so/glossary/capital-structure"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What are the key distinctions between cross-purchase and entity-purchase buy-sell agreements?","url":"https://dealroom.so/sba-7a/questions/what-are-the-key-distinctions-between-cross-purchase-and-entity-purchase-buy-sell-agreemen"},{"question":"What distinguishes a cross-purchase from an entity-purchase buy-sell agreement regarding life insurance?","url":"https://dealroom.so/sba-7a/questions/what-distinguishes-a-cross-purchase-from-an-entity-purchase-buy-sell-agreement-regarding-l"},{"question":"Are there specific requirements for the business entity structure for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-requirements-for-the-business-entity-structure-for-an-sba-7-a-loan"},{"question":"Can a non-profit entity apply for an SBA 7(a) loan for business expansion purposes?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-entity-apply-for-an-sba-7-a-loan-for-business-expansion-purposes"},{"question":"Can a corporate entity provide a guaranty instead of a personal one for some minority owners?","url":"https://dealroom.so/sba-7a/questions/can-a-corporate-entity-provide-a-guaranty-instead-of-a-personal-one-for-some-minority-owne"},{"question":"What if the acquired business changes its legal entity structure after the SBA loan is approved?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-changes-its-legal-entity-structure-after-the-sba-loan-is-app"}]},"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 — Consolidated Entity","url":"https://dealroom.so/glossary/consolidated-entity","source_type":"DealRoom Data"}}