Glossary · Doing the deal
In short
Buying the company itself, ownership papers and all. Required for partial buyouts.
A stock purchase transfers the shares of the existing legal entity rather than its individual assets. You inherit everything — assets, liabilities, contracts, and any unknown surprises buried in the company's history. Representations and warranties in the purchase agreement protect you from known issues, but stock purchases generally carry more risk than asset deals. The SBA allows stock purchases but requires additional documentation for the change-of-ownership file.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-14. 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 2026-06-14 · 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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