Glossary · Doing the deal
Without Cause
In short
"Without cause" refers to termination of an agreement or employment for any reason, provided it's not for a specific breach or wrongdoing. This clause gives flexibility but also carries a cost, like severance.
What it means in a deal
In an acquisition, this often appears in employment agreements, particularly for the seller or key employees you retain. If you need to terminate a seller's consulting agreement "without cause" post-closing, you'll typically owe them a severance payment or a specific portion of their remaining compensation. Understand these termination costs when negotiating any post-closing employment or consulting agreements.
Related terms
Common questions about Without Cause
- What factors could cause my SBA 7(a) loan application to be declined?
- What common issues can cause an SBA 7(a) loan application to be denied?
- What factors can cause delays in the SBA 7(a) loan application and approval process?
- Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?
- What constitutes a 'serious criminal offense' that may cause 7(a) loan ineligibility for a principal?
- What factors most commonly cause delays in the SBA 7(a) loan approval process for an acquisition?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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