Glossary · People and paperwork
Subscription agreement
In short
A legal contract between an investor and a company, outlining the terms and conditions under which the investor agrees to buy shares or ownership interests in the company.
What it means in a deal
You might encounter a subscription agreement if you're buying a stake in a business that is structured as a corporation or LLC and issuing new equity. This document formalizes your capital contribution and ownership percentage. Ensure it aligns with your equity injection and the overall deal structure.
Related terms
Common questions about Subscription agreement
- How does life insurance effectively fund a business buy-sell agreement?
- How does the purchase agreement structure affect an SBA partner buyout?
- How does an operating agreement impact an SBA partner buyout loan?
- What happens if the seller terminates the purchase agreement mid-process?
- What are the specific conditions for an acceptable full standby agreement?
- What if a franchise agreement contains provisions for indemnification that concern the SBA?
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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