Glossary · Reading the business
In short
This is a government-granted right to an inventor to exclude others from making, using, or selling an invention for a set period. For a buyer, patents can provide a significant competitive moat and protect proprietary technology.
If the business relies on patented technology, due diligence must confirm the patent's validity, remaining term, and clear ownership transfer. Patents are valuable intellectual property that can justify a higher business valuation, but their legal enforceability is key.
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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