Glossary · Doing the deal
Purchase price
In short
This is the total amount you pay to acquire the business. It's the core number around which your entire deal structure, including your loan and equity injection, is built.
What it means in a deal
The purchase price is typically established by the Letter of Intent (LOI) and confirmed during due diligence. It dictates the size of your SBA 7(a) loan request and the required equity injection. Ensure the price reflects a fair market valuation after your thorough review of the business's financials.
Related terms
Common questions about Purchase price
- What if the business valuation is insufficient to support the purchase price?
- What happens if my business valuation comes in lower than the purchase price?
- How is the purchase price determined for an SBA 7(a) partner buyout?
- What information is required to document the purchase price allocation for a business acquisition?
- How is the purchase price for a partner buyout determined for SBA loan purposes?
- What if the business valuation comes in significantly lower than the agreed-upon purchase price?
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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