Glossary · Doing the deal
Target Business
In short
The specific company you are looking to acquire. It's the focus of your search and due diligence efforts.
What it means in a deal
Identifying the right target business is the first step in your acquisition journey. Once you've signed an NDA and reviewed the Confidential Information Memorandum (CIM), you'll submit an LOI outlining your proposed deal terms. All subsequent due diligence and financing efforts revolve around this specific target.
Related terms
Common questions about Target Business
- How does high customer concentration in a target business affect SBA 7(a) acquisition loan approval?
- What specific due diligence does a lender perform on the target business's contracts and key customer relationships?
- What specific due diligence does the lender perform on the target business's financial statements for an acquisition?
- What common financial red flags in a target business can kill an SBA 7(a) acquisition loan approval?
- Can I apply for an SBA 7(a) loan without having a specific business acquisition target identified yet?
- Can an SBA 7(a) loan finance the inventory of a target business as part of the 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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