Understanding Cash Free Debt Free in M&A Transactions

21/02/2023 22 min Episodio 123
Understanding Cash Free Debt Free in M&A Transactions

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Episode Synopsis

Today, we're talking about cash-free debt-free, and what it means in M&A: When an acquirer buys another company, the transaction will be structured such that the buyer will not assume any of the debt on the seller's balance sheetThe buyer will not get to keep any of the cash on the seller's balance sheet.Most M&A deals are negotiated on a cash-free and debt-free basis.The seller keeps all cash and pays off all debt at the time of the sale of a business.
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