Glossary · Reading the business
In short
Options give someone the right to buy shares at a set price. They represent potential dilution or future ownership claims you need to account for in your valuation.
In a business acquisition, especially for companies with employees or early investors, options might exist for them to acquire equity. These need to be identified during due diligence, as they can affect the fully diluted capitalization table and your ultimate ownership percentage. You'll need to negotiate how these are handled: cancelled, exercised, or assumed by 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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