Kardia’s Post

This deal is "CASH-FREE / DEBT-FREE". I have heard various responses to this statement over the years. - There will be no cash or debt in the business at Completion. - The business will be sold with cash, but the Buyer won't need to pay for it. - How do I get the cash out of the business before Completion? - How will my client settle the debt, before they receive the proceeds at Completion? I think the lyrics to the song "Money (that's what I want)" do a great job articulating the actual meaning of this statement. ******* "The best things in life are free But you can give them to the birds and bees I want money (that's what I want)" ******* Let's be honest, the best things in life are free (well, except for my morning hot chocolate). But nothing in M&A is free 😉 CASH-FREE = business valuation excludes cash. Any cash in the business at Completion ⬆️ purchase price. DEBT-FREE = business valuation excludes debt. Any debt in the business at Completion ⬇️ purchase price. __________________________________________ Trivia: Money (that's what I want) was originally recorded by Barrett Strong in 1959 (my favourite version). The Beatles did an upbeat cover in 1963 and the Flying Lizards turned it upside down in 1979. Who's your favourite artist? What are your best cash-free / debt-free stories? #SPAAdvisory #MandA #Deals #Valuecreation https://lnkd.in/egzi4fnN