Glossary · Doing the deal
In short
A bargain purchase happens when you acquire a business for a price significantly below its fair market value. This can result from a motivated seller, market inefficiencies, or unique buyer advantages.
Identifying a bargain purchase requires thorough due diligence and a robust business valuation. While attractive, lenders will scrutinize why the price is so low to ensure no hidden liabilities or risks. Be ready to explain the rationale.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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