Glossary · People and paperwork
In short
A provision in a company's governing documents that requires more than a simple majority vote (e.g., 67% or 75%) for certain key decisions. As a buyer, understand if these exist, as they can complicate future strategic changes or major asset sales.
These requirements can be found in operating agreements, bylaws, or shareholder agreements. They might apply to actions like selling the business, amending governing documents, or taking on significant debt. Identify if any such requirements would necessitate the seller's cooperation post-closing if they retain any ownership, or if they complicate your ability to make changes.
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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