{"ok":true,"canonical_url":"https://dealroom.so/glossary/trade-secret","api_url":"https://dealroom.so/api/public/glossary/trade-secret","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":"trade-secret","term":"Trade secret","group":"Reading the business","definition":"This is confidential business information that gives a company a competitive edge, like a special recipe or proprietary process. It's a valuable intangible asset.","what_it_means":"During due diligence, identify and understand any trade secrets, as they can be a significant part of the business's value. Ensure these are properly protected, documented, and transferable as part of the asset purchase. You'll want strong non-compete and confidentiality agreements from the seller.","url":"https://dealroom.so/glossary/trade-secret","official_sources":[],"related":[{"slug":"intangible-asset","term":"Intangible asset","url":"https://dealroom.so/glossary/intangible-asset"},{"slug":"non-compete","term":"Non-compete","url":"https://dealroom.so/glossary/non-compete"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"}],"related_questions":[{"question":"Can a 7(a) loan finance the purchase of intangible assets like customer lists or trade secrets in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-finance-the-purchase-of-intangible-assets-like-customer-lists-or-trade-secr"},{"question":"Can an SBA 7(a) working capital loan be used to pay off seller's outstanding trade payables?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-working-capital-loan-be-used-to-pay-off-seller-s-outstanding-trade-payables"},{"question":"Can I use the working capital portion of my SBA loan to pay off the acquired business's existing trade payables?","url":"https://dealroom.so/sba-7a/questions/can-i-use-the-working-capital-portion-of-my-sba-loan-to-pay-off-the-acquired-business-s-ex"}]},"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 — Trade secret","url":"https://dealroom.so/glossary/trade-secret","source_type":"DealRoom Data"}}