Glossary · Doing the deal
Acquisition Cost
In short
This is the total price you pay to buy a business, including the purchase price, working capital, and all associated fees. It's the full financial outlay for the entire transaction.
What it means in a deal
Your acquisition cost forms the basis for your financing structure. It includes the business's purchase price, required working capital, lender fees, legal expenses, and other closing costs. Ensure you account for every expense to avoid unexpected shortfalls.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Acquisition Cost
- Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
- Can an SBA 7(a) loan finance the cost of purchasing a commercial vehicle fleet as part of a business acquisition?
- For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?
- What factors primarily influence the premium cost of business life insurance?
- Does the SBA require an independent business appraisal for a business acquisition costing $400,000?
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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