Glossary · Reading the business
In short
The right, but not the obligation, to buy a company's stock at a predetermined price. If present in a target business, these can dilute your ownership or create future liabilities.
In an asset purchase, existing stock options are typically not a concern. However, in a stock purchase, you inherit all existing obligations. You must understand how any outstanding stock options or warrants will be handled, usually by being exercised or bought out by the seller before closing.
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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