Glossary · Doing the deal
In short
An agreement where the seller remains with the business for a period after the sale, typically to assist with the transition, provide training, or consult. This is common in small business acquisitions.
This agreement allows for a smooth handover of knowledge and customer relationships. The SBA requires that the seller's compensation under this agreement is market rate and not disguised debt. Ensure the agreement clearly defines the seller's role, duration, and compensation, and that you, the buyer, retain full managerial control.
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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