Glossary · Doing the deal
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.
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.
Defined by DealRoom.so 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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day