Glossary · Doing the deal
Target Company
In short
The target company is the business you are seeking to acquire. It's the focus of your due diligence and the entity that will ultimately be purchased.
What it means in a deal
All your efforts, from initial search to due diligence and closing, revolve around the target company. You are evaluating its financials, operations, legal structure, and market position to determine its value and fit for your acquisition. Ensure you have a clear understanding of the target company's assets, liabilities, and potential risks before making an offer.
Related terms
Common questions about Target Company
- 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?
- Are business life insurance premiums generally tax deductible for the company?
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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