Glossary · People and paperwork
In short
A contract between an employer and an employee outlining terms of employment, compensation, and responsibilities. Buyers review these for key employees to understand obligations and ensure continuity post-acquisition.
For crucial employees, review existing employment agreements to understand severance clauses, non-competes, or change-of-control provisions. You may need to negotiate new agreements or modify existing ones to align with your post-acquisition strategy and retain key talent.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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