Glossary · People and paperwork
In short
A legally binding agreement between two or more parties, outlining their rights and obligations. In an acquisition, you'll review all significant contracts to understand ongoing commitments and revenue streams.
During due diligence, scrutinize customer contracts, vendor agreements, leases, and employment contracts. Pay attention to terms like renewal, termination clauses, and change of control provisions. Ensure contracts are assignable to you, or that new ones can be easily established post-closing.
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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