Glossary · Reading the business
Unexercised option
In short
A right, but not an obligation, to buy or sell something (like shares or property) at a predetermined price, which has not yet been used. These can represent potential future claims on the business.
What it means in a deal
When reviewing a business, look for unexercised options in the seller's documentation, especially regarding equity or real estate. These could dilute your ownership or create future liabilities if exercised. Understand their terms and impact on your deal structure.
Related terms
Common questions about Unexercised option
- When does an unexercised option to acquire ownership in a business trigger affiliation for SBA size standard purposes?
- Does the SBA 7(a) loan program have an 'Express' option for quicker approvals?
- Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?
- Is an SBA 7(a) loan a good option for someone just starting a brand-new business?
- Can a lender change the base rate option for a variable rate 7(a) loan after closing?
- Is an SBA 7(a) loan an option if I want to buy out a business partner's share?
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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