Glossary · Reading the business
Options
In short
Options give someone the right to buy shares at a set price. They represent potential dilution or future ownership claims you need to account for in your valuation.
What it means in a deal
In a business acquisition, especially for companies with employees or early investors, options might exist for them to acquire equity. These need to be identified during due diligence, as they can affect the fully diluted capitalization table and your ultimate ownership percentage. You'll need to negotiate how these are handled: cancelled, exercised, or assumed by you.
Related terms
Common questions about Options
- What are the interest rate options for an SBA 7(a) loan?
- What alternative base rate options are available for variable rate 7(a) loans?
- Are fixed-rate or variable-rate options more common for SBA 7(a) loans?
- How does ownership of options or warrants affect affiliation determination for SBA size standards?
- What kind of interest rate options are available for an SBA 7(a) loan?
- What are the currently approved base rate options for variable rate 7(a) loans?
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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