Glossary · Doing the deal
In short
A transaction where the existing management team of a company acquires a controlling stake in the business from its current owners.
While more common in larger deals, an MBO can occur if an internal manager (not the owner) buys the company. For an SBA 7(a) loan, the manager must meet all eligibility requirements and inject sufficient equity, like an external buyer. The SBA looks for a clear change of ownership.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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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