Glossary · Doing the deal
Absolute Right of First Refusal
In short
This is a contractual right giving a party the first chance to buy an asset or business if it's offered for sale, usually on the same terms as another bona fide offer. It can complicate or block your acquisition.
What it means in a deal
If a third party, like a landlord or a co-owner, holds an absolute right of first refusal, they can step in and buy the business out from under your deal. You must identify any such rights early in due diligence and ensure they are properly waived or exercised before you commit significant resources to an acquisition.
Related terms
Common questions about Absolute Right of First Refusal
- Will the seller's refusal to provide certain financial documents jeopardize my SBA loan approval?
- What are the typical interest rates for an SBA 7(a) loan right now?
- If I inherit funds right before closing, can they count towards my equity injection?
- What is the absolute maximum dollar amount available for an SBA 7(a) loan?
- What is the absolute highest amount an SBA 7(a) loan can be for?
- What if the seller of the business insists on receiving a portion of their note repayment within the first year?
Defined by CapBench 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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