Glossary · Doing the deal
In short
These are specific requirements that must be satisfied by both buyer and seller before the acquisition can be finalized. They ensure all parties meet their obligations and protect against unforeseen issues.
Your Letter of Intent (LOI) and purchase agreement will outline critical Closing Conditions, such as completing due diligence, obtaining all necessary third-party consents (e.g., landlord, franchise), and securing the 7(a) loan approval. If any condition isn't met, either party can typically terminate the deal without penalty. They are essentially Conditions Precedent.
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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