Glossary · People and paperwork
Litigation
In short
The process of taking legal action, typically a lawsuit. Any ongoing or past litigation against the business or seller is a serious risk that needs thorough investigation.
What it means in a deal
During due diligence, always inquire about any current or past litigation involving the business or seller. Unresolved lawsuits can represent significant liabilities and impact the business's value. Your attorney should review all relevant legal documents thoroughly.
Related terms
Common questions about Litigation
- What if the business I'm acquiring has existing litigation or legal disputes?
- How do past civil litigation or judgments impact my SBA 7(a) loan approval?
- What if the business I'm buying has existing legal disputes or pending litigation?
- What if the business I want to buy has pending litigation or unresolved legal claims?
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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