Glossary · People and paperwork
In short
When one party improperly pressures or manipulates another into making a decision against their best interest. This can invalidate agreements and is a red flag in any business transaction.
In an acquisition, be wary of situations where the seller or another party might be coercing you into unfavorable terms. This also applies to the seller's original business formation. Lenders want to see that all parties entered into agreements freely. Ensure all your decisions are independent and well-researched.
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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