Glossary · Doing the deal
Right of First Refusal(ROFR)
In short
This clause gives a party the first chance to buy an asset or business if the owner decides to sell. For a buyer, it's a future option on a potential acquisition, but it can also limit your ability to sell later.
What it means in a deal
You might encounter this if the business you're buying has existing agreements, such as with a landlord or a minority shareholder. As a buyer, ensure any ROFRs are properly waived or exercised before closing, as they can complicate future exit strategies or even the current acquisition.
Related terms
Common questions about Right of First Refusal
- Will the seller's refusal to provide certain financial documents jeopardize my SBA loan approval?
- What are the typical interest rates for an SBA 7(a) loan right now?
- If I inherit funds right before closing, can they count towards my equity injection?
- What if the seller of the business insists on receiving a portion of their note repayment within the first year?
- If I inherit $75,000 right before closing, can these funds count towards my equity injection?
- Can the seller's refusal to provide necessary financial documentation during due diligence kill my SBA 7(a) loan application?
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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