{"ok":true,"canonical_url":"https://dealroom.so/glossary/obsolescence","api_url":"https://dealroom.so/api/public/glossary/obsolescence","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":"obsolescence","term":"Obsolescence","group":"Reading the business","definition":"The state of being no longer useful or desired because something newer or more efficient exists. In inventory, it means goods are difficult to sell.","what_it_means":"During due diligence, assess the risk of inventory obsolescence, especially for businesses with rapidly changing products or technology. Obsolete inventory can lead to significant write-downs, directly impacting the business's profitability and asset value post-acquisition.","url":"https://dealroom.so/glossary/obsolescence","official_sources":[],"related":[{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"turnover-rate","term":"Turnover rate","url":"https://dealroom.so/glossary/turnover-rate"},{"slug":"aging-report","term":"Aging report","url":"https://dealroom.so/glossary/aging-report"},{"slug":"historical-cost","term":"Historical cost","url":"https://dealroom.so/glossary/historical-cost"}],"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 — Obsolescence","url":"https://dealroom.so/glossary/obsolescence","source_type":"DealRoom Data"}}