Glossary · Doing the deal
In short
These are specific events or actions that must occur before another action (like Closing) can take place or a contract becomes binding. They protect both buyer and seller.
In a business acquisition, Conditions Precedent are vital. For example, obtaining 7(a) loan approval, completing satisfactory Due Diligence, or securing a new lease agreement are common conditions. Both parties must satisfy these before the deal can progress to Closing. They are synonymous with Closing Conditions.
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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