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Glossary · Doing the deal

Option

In short

A contract giving the holder the right, but not the obligation, to buy or sell an asset at a specified price within a certain timeframe.

What it means in a deal

In a business acquisition, an option might relate to real estate or future equity. Ensure any options held by the seller or others are clearly understood and don't create unexpected obligations or dilution for you after closing.

Common questions about Option

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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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