Glossary · Reading the business
Key Management
In short
These are the essential employees whose knowledge and skills are critical to the business's daily operations and success, beyond the owner.
What it means in a deal
Identify who these people are during Due diligence. Understand their roles, compensation, and retention plans. If they leave post-acquisition, the business could face significant disruption. Your Business plan should address their retention or replacement.
Related terms
Common questions about Key Management
- What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?
- If a key management employee who is not an owner is a foreign national, does this affect SBA 7(a) loan eligibility?
- How does the SBA verify my business management experience?
- Is previous business ownership or management experience required to qualify?
- How does common management trigger affiliation for size standard purposes?
- How does the SBA define "management experience" for a business acquisition?
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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