A founder-focused guide explaining how enterprise value becomes equity value, cash at close, and total seller proceeds after net debt, working capital, fees, escrow, rollover equity, seller notes, earnouts, taxes, and timing.
A seller-focused guide to enterprise value, equity purchase price, purchase consideration, transaction value, closing adjustments, and the difference between headline value and cash at closing.
Debt-like items are liabilities that reduce seller proceeds in M&A transactions. Learn how enterprise value adjustments, net debt, and working capital determine the equity value paid at closing.
“Cash-free debt-free” is a core M&A term that determines what sellers actually receive at closing. This guide explains what cash-free / debt-free means, how buyers define debt-like and cash-like items, and how enterprise value converts to equity proceeds through net debt and working capital adjustments. Includes a full deal example and EV→equity bridge walkthrough.
Net debt in M&A is the deal-defined bridge from enterprise value to equity proceeds. This guide explains the net debt formula, debt-like vs cash-like items, deferred revenue and lease nuances (ASC 842), and how LOI definitions and closing statements affect seller outcomes in middle-market transactions.
Master the EV→Equity bridge: cash-free/debt-free conventions, debt-like items, and the working-capital peg that protects price and net proceeds at closing.