Glossary · Doing the deal
In short
A transferability clause dictates whether and how a contract, like a lease or franchise agreement, can be assigned to a new owner. This is crucial for seamless business transitions.
You must review all key contracts for transferability clauses during due diligence, especially leases and major supplier agreements. If a contract requires seller consent for assignment, ensure this is secured before closing. A non-transferable key contract can derail your acquisition.
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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