Cash-Free Debt-Free Deals Explained

Cash-free debt-free is a common pricing convention in which the seller retains excess cash and delivers the company without agreed debt-like obligations. The phrase sounds simple, but the definitions can materially change the amount paid at closing.

Working Capital Peg Explained

A working capital peg defines the normal level of short-term operating capital expected to remain in a company at closing. It protects the buyer from receiving an underfunded business and protects the seller from an arbitrary adjustment.

Deferred Revenue in SaaS Deals

Deferred revenue arises when a company receives payment before fully delivering the contracted service. In a SaaS acquisition, it affects cash, working capital, post-close delivery obligations, and the negotiation of the economic balance sheet.