Glossary · Reading the business
In short
Represents ownership shares in a corporation. In an acquisition, a buyer might purchase the seller's stock, acquiring the entire corporate entity, including its assets and liabilities.
A stock purchase means you take over the legal entity directly, inheriting all its historical liabilities, known and unknown. This is less common for SBA 7(a) loans, which typically favor asset purchases to mitigate buyer risk.
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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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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