Understanding Cash Free Debt Free in M&A Transactions

<p>Today, we're talking about cash-free debt-free, and what it means in M&A: </p><ul><li>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 sheet</li><li>The buyer will not get to keep any of the cash on the seller's balance sheet.</li><li>Most M&A deals are negotiated on a cash-free and debt-free basis.</li><li>The seller keeps all cash and pays off all debt at the time of the sale of a business.</li></ul>