{"ok":true,"canonical_url":"https://dealroom.so/glossary/target-business","api_url":"https://dealroom.so/api/public/glossary/target-business","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":"target-business","term":"Target Business","group":"Doing the deal","definition":"The specific company you are looking to acquire. It's the focus of your search and due diligence efforts.","what_it_means":"Identifying the right target business is the first step in your acquisition journey. Once you've signed an NDA and reviewed the Confidential Information Memorandum (CIM), you'll submit an LOI outlining your proposed deal terms. All subsequent due diligence and financing efforts revolve around this specific target.","url":"https://dealroom.so/glossary/target-business","official_sources":[],"related":[{"slug":"nda-buyer-verification","term":"NDA","url":"https://dealroom.so/glossary/nda-buyer-verification"},{"slug":"cim-deal-book","term":"CIM","url":"https://dealroom.so/glossary/cim-deal-book"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"How does high customer concentration in a target business affect SBA 7(a) acquisition loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-high-customer-concentration-in-a-target-business-affect-sba-7-a-acquisition-loan-"},{"question":"What specific due diligence does a lender perform on the target business's contracts and key customer relationships?","url":"https://dealroom.so/sba-7a/questions/what-specific-due-diligence-does-a-lender-perform-on-the-target-business-s-contracts-and-k"},{"question":"What specific due diligence does the lender perform on the target business's financial statements for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-specific-due-diligence-does-the-lender-perform-on-the-target-business-s-financial-sta"},{"question":"What common financial red flags in a target business can kill an SBA 7(a) acquisition loan approval?","url":"https://dealroom.so/sba-7a/questions/what-common-financial-red-flags-in-a-target-business-can-kill-an-sba-7-a-acquisition-loan-"},{"question":"Can I apply for an SBA 7(a) loan without having a specific business acquisition target identified yet?","url":"https://dealroom.so/sba-7a/questions/can-i-apply-for-an-sba-7-a-loan-without-having-a-specific-business-acquisition-target-iden"},{"question":"Can an SBA 7(a) loan finance the inventory of a target business as part of the purchase price?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-inventory-of-a-target-business-as-part-of-the-purchase-pri"}]},"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 — Target Business","url":"https://dealroom.so/glossary/target-business","source_type":"DealRoom Data"}}