Glossary · Doing the deal
In short
A contractual clause where the seller promises to compensate you for specific losses or damages arising after the sale, typically for issues that occurred under their ownership.
Your purchase agreement must include strong indemnification clauses. This protects you if problems like undisclosed liabilities or breaches of representations surface post-closing. Ensure the seller stands behind their statements, especially concerning tax liabilities or legal disputes that could come back to haunt you.
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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