Deal Structure

Cash-Free Debt-Free

A common deal idea meaning the buyer gets the business without extra cash or debt, and the price is adjusted for those items. Why it matters: Many deals assume the seller keeps excess cash and pays off debt, but the details can affect the final amount received.

Related terms

Seller

The current business owner who wants to sell the business. Why it matters: The seller is not just handing over ownership; they are also proving the business, answering diligence requests, negotiating risk allocation, and often helping with transition.

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.

More from Deal Structure

Asset Sale Cash at Close Contingent Payment Debt-Like Items Earnout Escrow Holdback Majority Sale Membership Interest Sale Minority Rollover Minority Sale Purchase Price Adjustment

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