Glossary · Reading the business
Shared Services
In short
Functions like HR, accounting, or IT that are provided by a central entity to multiple businesses, often a parent company or related entities.
What it means in a deal
If the business you're buying relies on Shared services from the seller's other entities, you need to understand how these will transition. You might need to replicate these services internally or find new providers, which impacts your Operating plan and Cash flow projection post-acquisition.
Related terms
Common questions about Shared Services
- How do potential conflicts of interest with the seller, like shared services, affect approval?
- How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?
- Does sharing common administrative services, like HR or accounting, automatically trigger affiliation for size determination?
- How does the SBA determine "common control" when assessing affiliation for a management company providing services?
- How is 'sweat equity' or future services treated for an SBA 7(a) loan equity injection?
- Can sweat equity or future services I provide to the business count towards the required equity injection?
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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