{"ok":true,"canonical_url":"https://dealroom.so/glossary/future-liability","api_url":"https://dealroom.so/api/public/glossary/future-liability","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":"future-liability","term":"Future Liability","group":"Reading the business","definition":"Obligations a business may incur in the future, such as potential lawsuits, warranty claims, or environmental cleanup costs. These are crucial to identify during due diligence as they can impact your post-acquisition cash flow.","what_it_means":"During due diligence, your legal counsel must uncover any potential future liabilities through contract review, litigation searches, and environmental assessments. An asset purchase typically limits the assumption of seller liabilities, but some can still transfer, requiring careful structuring of the buy-sell agreement.","url":"https://dealroom.so/glossary/future-liability","official_sources":[],"related":[{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"buy-sell-agreement","term":"Buy-Sell Agreement","url":"https://dealroom.so/glossary/buy-sell-agreement"},{"slug":"environmental-questionnaire","term":"Environmental Questionnaire","url":"https://dealroom.so/glossary/environmental-questionnaire"}],"related_questions":[{"question":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"question":"How does an SBA 7(a) loan affect my ability to get future business financing?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-affect-my-ability-to-get-future-business-financing"},{"question":"Can I use an SBA 7(a) loan to buy land for future business expansion?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-land-for-future-business-expansion"},{"question":"Can a 7(a) loan finance the purchase of undeveloped land for future business expansion?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-finance-the-purchase-of-undeveloped-land-for-future-business-expansion"},{"question":"Can I use an SBA 7(a) loan to purchase raw land for future business use?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-purchase-raw-land-for-future-business-use"},{"question":"How is 'sweat equity' or future services treated for an SBA 7(a) loan equity injection?","url":"https://dealroom.so/sba-7a/questions/how-is-sweat-equity-or-future-services-treated-for-an-sba-7-a-loan-equity-injection"}]},"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 — Future Liability","url":"https://dealroom.so/glossary/future-liability","source_type":"DealRoom Data"}}