{"ok":true,"canonical_url":"https://dealroom.so/glossary/turnaround-acquisition","api_url":"https://dealroom.so/api/public/glossary/turnaround-acquisition","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":"turnaround-acquisition","term":"Turnaround Acquisition","group":"Reading the business","definition":"This is buying a business that is underperforming or in distress with the intent to revitalize it and improve its profitability. It's a high-risk, high-reward strategy.","what_it_means":"The SBA 7(a) loan program is generally designed for healthy businesses. While not strictly prohibited, lenders are cautious with turnaround acquisitions due to the increased risk. You'll need a very compelling business plan, strong collateral, and a clear strategy to convince a lender of the business's future viability.","url":"https://dealroom.so/glossary/turnaround-acquisition","official_sources":[],"related":[{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"}],"related_questions":[{"question":"What if the acquired business has a history of declining revenue, but the buyer has a strong turnaround plan?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-a-history-of-declining-revenue-but-the-buyer-has-a-stron"},{"question":"Does the SBA 7(a) program require a minimum loan amount for business acquisitions?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-7-a-program-require-a-minimum-loan-amount-for-business-acquisitions"},{"question":"How do SBA loan rates compare to conventional bank loan rates for business acquisitions?","url":"https://dealroom.so/sba-7a/questions/how-do-sba-loan-rates-compare-to-conventional-bank-loan-rates-for-business-acquisitions"},{"question":"How does the SBA evaluate goodwill in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-goodwill-in-a-business-acquisition"},{"question":"How does the SBA define \"management experience\" for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-management-experience-for-a-business-acquisition"},{"question":"Who typically owns the life insurance policy on a seller post-acquisition?","url":"https://dealroom.so/sba-7a/questions/who-typically-owns-the-life-insurance-policy-on-a-seller-post-acquisition"}]},"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 — Turnaround Acquisition","url":"https://dealroom.so/glossary/turnaround-acquisition","source_type":"DealRoom Data"}}