Article

Issues in Negotiating Cash-Free Debt-Free Deals

January 27, 2014
#
Financial consulting
Business acquisition Financial due diligence Mergers & acquisitions Private equity

Most deals are structured on a cash-free, debt-free basis. But that means the final price will hinge on how bonuses, tax liabilities, customer deposits, and hundreds of other details are addressed. These issues are often overlooked during due diligence and not adequately addressed in the letter of intent. But failing to address them on a timely basis could delay closing, create tension between the parties, or even result in a broken deal. 

RSM contributors

  • Andy Jenkins
    Partner

Subscribe to M&A Insights

Gain a competitive edge each quarter with sharp market analysis and actionable insights from seasoned industry advisors focused on private equity and M&A.