Deal Structure

Debt-Like Items

Obligations that may reduce the seller’s proceeds even if they are not traditional bank loans. Why it matters: Buyers may treat certain obligations like debt even if they are not bank loans, reducing seller proceeds at closing.

Related terms

Closing

The moment when the sale officially happens and ownership transfers. Why it matters: This term affects what must happen at closing, how money moves, and how final obligations are documented.

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.

More from Deal Structure

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

Browse all 236 terms in the knowledge bank →

Get a real advisor on your team

Looking up terms is helpful. Having a vetted advisor who explains them in the context of your specific business is better.

Plan your exit Back to knowledge bank