{"ok":true,"canonical_url":"https://dealroom.so/glossary/target-company","api_url":"https://dealroom.so/api/public/glossary/target-company","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-company","term":"Target Company","group":"Doing the deal","definition":"The target company is the business you are seeking to acquire. It's the focus of your due diligence and the entity that will ultimately be purchased.","what_it_means":"All your efforts, from initial search to due diligence and closing, revolve around the target company. You are evaluating its financials, operations, legal structure, and market position to determine its value and fit for your acquisition. Ensure you have a clear understanding of the target company's assets, liabilities, and potential risks before making an offer.","url":"https://dealroom.so/glossary/target-company","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"}],"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":"Can an SBA 7(a) loan help me acquire another company?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-acquire-another-company"},{"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"}]},"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 Company","url":"https://dealroom.so/glossary/target-company","source_type":"DealRoom Data"}}