{"ok":true,"canonical_url":"https://dealroom.so/glossary/options","api_url":"https://dealroom.so/api/public/glossary/options","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":"options","term":"Options","group":"Reading the business","definition":"Options give someone the right to buy shares at a set price. They represent potential dilution or future ownership claims you need to account for in your valuation.","what_it_means":"In a business acquisition, especially for companies with employees or early investors, options might exist for them to acquire equity. These need to be identified during due diligence, as they can affect the fully diluted capitalization table and your ultimate ownership percentage. You'll need to negotiate how these are handled: cancelled, exercised, or assumed by you.","url":"https://dealroom.so/glossary/options","official_sources":[],"related":[{"slug":"conversion-rights","term":"Conversion rights","url":"https://dealroom.so/glossary/conversion-rights"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"}],"related_questions":[{"question":"What are the interest rate options for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-are-the-interest-rate-options-for-an-sba-7-a-loan"},{"question":"What alternative base rate options are available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rate-options-are-available-for-variable-rate-7-a-loans"},{"question":"Are fixed-rate or variable-rate options more common for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-fixed-rate-or-variable-rate-options-more-common-for-sba-7-a-loans"},{"question":"How does ownership of options or warrants affect affiliation determination for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-ownership-of-options-or-warrants-affect-affiliation-determination-for-sba-size-st"},{"question":"What kind of interest rate options are available for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-interest-rate-options-are-available-for-an-sba-7-a-loan"},{"question":"What are the currently approved base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-currently-approved-base-rate-options-for-variable-rate-7-a-loans"}]},"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 — Options","url":"https://dealroom.so/glossary/options","source_type":"DealRoom Data"}}