Glossary · Doing the deal
Transition and Training Period
In short
This is the agreed-upon time post-closing where the seller helps you learn the business operations. It's vital for a smooth handover and continued success.
What it means in a deal
Your purchase agreement will specify the length and terms of this period. Ensure it's long enough for you to fully grasp operations, client relationships, and key processes. A well-defined transition minimizes post-acquisition risks and protects your investment.
Related terms
Common questions about Transition and Training Period
- Can an SBA 7(a) loan include funds for employee training or transition costs after a business acquisition?
- Can I use an SBA 7(a) loan to finance employee training or transition costs after buying a business?
- Does the SBA 7(a) loan program allow for seller training period financing?
- Why would a buyer require life insurance on a selling business owner during a transition period?
- Does the SBA 7(a) loan program allow for seller training period financing for the buyer?
- What if the seller of a business remains a key employee after closing for a critical transition period?
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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