Any risks uniquely pertaining to EO companies, e.g., repurchase obligation in ESOP companies

A Special Purpose Acquisition Company (SPAC), also known as a blank check company, is formed solely to raise funds through an initial public offering (IPO) for the purpose of acquiring an existing company.

A Search Fund is an investment pool aspiring entrepreneurs use to raise capital from HWNI's in order to acquire a business (valued between $5 and $30MM) and step in as CEO and operate the company.

A low-profit limited liability company (L3C) is an enterprise with a profit goal that is subordinate to its charitable mission.

Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools.

First-loss capital or First-loss reserve is money invested with the highest risk of loss in a deal. It acts like a buffer, absorbing losses before impacting other investors.

Statement on Auditing Standards (SAS) 136 was issued by the AICPA’s Auditing Standards Board to address changes to audits of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) (including ESOPs).

A corporation is a legal entity that is separate and distinct from its owners. Corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

The price the EO plan paid for the shares when first acquired, including it they were acquired with debt and then released later at higher or lower values. Four methods that can be used in computing the cost basis of the employers securities in the ESOP.

The amount of money a company has on hand. Working capital is calculated by subtracting current liabilities from current assets. In other words, your co-op will subtract all of your debts and financial obligations from the value of your cash and assets.

Any change of the portion of equity or debt components of a company's balance sheet with the intent to change the equity owned by an EO Plan (such as ESOP or EOT)

“Silver tsunami” refers to the large cohort of Americans entering their retirement years as the baby boom generation, born 1946 to 1964, continues to age. The term is used to highlight the economic opportunities created by an aging population and the challenges it may pose

Preferred stock represents ownership in a company with higher claims on dividends and asset distribution compared to common stock

Replicable, out-of-the-box worker-owned businesses that provide a pathway to work for DREAMers and undocumented individuals.

Types of transactions with an employee ownership plan which, if engaged in, would or could create some kind of legal liability, e.g., "self dealing" or other forms of conflict of interest.

A consumer-owned co-op, typically a retail grocery store brick and mortar operation.

Cooperatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organised in a democratic manner.

Cooperatives are autonomous, self-help organisations controlled by their members. If they enter into agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

Employee stock purchase plans (ESPPs) enable employees to buy company stock at a discounted rate, such as 15 percent. The plans offer a potential financial benefit to employees, encourage them to stay with the company for a certain period of time (otherwise they lose the benefit), and can promote employee loyalty to the business.

When employees are given an option, and they decide to, laterally transfer 401k assets to finance the ESOP transition. This results in more cash made available to the selling owner at the time of closing.

Cooperatives work for the sustainable development of their communities through policies approved by their members.

A business that issues surety bonds for financial guarantees. If the bonded party fails to perform, the bonding company will cover the costs, acting as a safety net for the person hiring the bonded party.

The degree of influence that second or third parties may have over a seller's ultimate decision to sell their business, for what price, on what terms, etc. When buyer autonomy meets seller autonomy the possibility of selling at a truly fair market value (FMV) is created.

QSBS is a tax provision that allows sellers to exclude a substantial portion of their capital gains from federal tax when selling C-corporation stock.

The time it takes for a selling owner to move from exploration of succession options through a finalized sale.

Cost of capital is a calculation of the minimum return that would be necessary in order to justify undertaking a capital budgeting project, such as building a new factory. It is an evaluation of whether a projected decision can be justified by its cost.

In accounting, goodwill is an intangible asset. The concept of goodwill comes into play when a company looking to acquire another company is willing to pay a price premium over the fair market value of the company’s net assets.

Discount applied to the business valuation when only a minority interest in the business is being sold.

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds.

An installment sale is when a business or property is sold, and at least one payment is received after the tax year of the sale.