Glossary · Doing the deal
In short
A contract that gives an employee or investor the right, but not the obligation, to purchase a company's stock at a predetermined price within a certain timeframe.
If you're buying a business via a stock purchase, be aware of any existing stock option agreements. These can dilute your ownership percentage if exercised. In an asset purchase, this is less relevant as you're not acquiring the existing corporate entity directly. Ensure all outstanding options are identified and addressed in the purchase agreement.
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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