{"ok":true,"canonical_url":"https://dealroom.so/glossary/purchase-price","api_url":"https://dealroom.so/api/public/glossary/purchase-price","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":"purchase-price","term":"Purchase price","group":"Doing the deal","definition":"This is the total amount you pay to acquire the business. It's the core number around which your entire deal structure, including your loan and equity injection, is built.","what_it_means":"The purchase price is typically established by the Letter of Intent (LOI) and confirmed during due diligence. It dictates the size of your SBA 7(a) loan request and the required equity injection. Ensure the price reflects a fair market valuation after your thorough review of the business's financials.","url":"https://dealroom.so/glossary/purchase-price","official_sources":[],"related":[{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What if the business valuation is insufficient to support the purchase price?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-valuation-is-insufficient-to-support-the-purchase-price"},{"question":"What happens if my business valuation comes in lower than the purchase price?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-valuation-comes-in-lower-than-the-purchase-price"},{"question":"How is the purchase price determined for an SBA 7(a) partner buyout?","url":"https://dealroom.so/sba-7a/questions/how-is-the-purchase-price-determined-for-an-sba-7-a-partner-buyout"},{"question":"What information is required to document the purchase price allocation for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-information-is-required-to-document-the-purchase-price-allocation-for-a-business-acqu"},{"question":"How is the purchase price for a partner buyout determined for SBA loan purposes?","url":"https://dealroom.so/sba-7a/questions/how-is-the-purchase-price-for-a-partner-buyout-determined-for-sba-loan-purposes"},{"question":"What if the business valuation comes in significantly lower than the agreed-upon purchase price?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-valuation-comes-in-significantly-lower-than-the-agreed-upon-purchase-"}]},"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 — Purchase price","url":"https://dealroom.so/glossary/purchase-price","source_type":"DealRoom Data"}}