Glossary · People and paperwork
In short
An agreement where shareholders transfer their voting rights to a trustee for a specific period. This consolidates voting power, which you need to understand if it affects control or decision-making in the target business.
While uncommon in small business acquisitions, if a voting trust exists, you must thoroughly understand its terms and duration. Ensure it will not prevent you from exercising full control post-acquisition or complicate the ownership transfer process. Review the trust agreement meticulously during due diligence.
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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