Refers to the costs associated with business sales, e.g., business broker fees with a 3rd party sale

The Economic Injury Disaster Loan (EIDL) program offered by the Small Business Administration (SBA) provides crucial financial assistance to small businesses, agricultural cooperatives, and nonprofit organizations impacted by declared disasters.

An ISO gives an employee the right to buy shares of company stock at a discounted price. Generally, ISOs are awarded only to top management and highly-valued employees. ISOs are also called statutory or qualified stock options.

The Employee Equity Investment Act (EEIA) aims to use the SBA's SBIC program to guarantee loans for investment funds supporting employee ownership.

A conversion to EO facilitated by 3rd party financing (e.g., Apis & Heritage, Obran) and often accompanied by educational support services

A portion of something, such as a transaction to buy a company that occurs in parts (tranches)

Venture capital (VC) is a form of private equity and a type of financing for startup companies and small businesses with long-term growth potential.

Transferable value refers to the value derived from financial performance of a business that is not tied to a specific individual or the original owner

Regulation Crowdfunding enables eligible companies to offer and sell securities through crowdfunding.

Refers to businesses who have qualified with the SBA as certified veteran-owned small businesses

An impediment to the sale of a business to the employees, e.g., selling owner on a very short timeline, highly volatile financial history, etc.

Feelings of or a sense of ownership

Blended finance lets investors choose different risk tolerances while all participating in the same project. Often used in real estate transactions, it is also proving to be an effective way to get capital to critical, but hard-to-fund projects.

The Debt-Service Coverage Ratio (DSCR) assesses a company's ability to pay its debt using cash flow. It's calculated by dividing net operating income by total debt service, including principal and interest. This ratio shows if a company earns enough to cover its debt obligation.

CAFE is a novel financial instrument aimed at enhancing community engagement in company success introduced by Fairmint. Developed in collaboration with legal experts, CAFE offers enhanced control for founders, equity access for stakeholders, and liquidity for investors.

A leveraged buyout (LBO) is when one company acquires another using mostly borrowed money, often secured by the assets of both companies.

The Worker Ownership, Readiness, and Knowledge (WORK) Act, part of the SECURE 2.0 Act of 2022, aims to promote and support worker-owned businesses in the U.S.

The rights of managers, employees and other operational actors within a business to handle the day to day functions/operation of the business. These rights can be exercised more laterally (flatly) or vertically (hierarchically).

The NMTC Program incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities.

The Price-to-Earnings (P/E) ratio is a fundamental metric used to assess a company's stock valuation by comparing its current share price to its earnings per share (EPS). The P/E ratio helps determine if a stock is overvalued or undervalued relative to its earnings.

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

The Employee Impact Index™ illuminates company top opportunities to leverage changes in the operational and managerial practices that have known correlations to improved human capital and financial KPIs. Index scores provide the business with an actionable roadmap to success.

IRR, or internal rate of return, is a metric used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.

A non-EO business owner who has become curious about EO, and is willing to continue exploring this option for business succession planning purposes.

Consumer cooperatives are owned by the people who do business there

A specific governing body in an EO company, e.g., an ESOP committee, charged with administering an ESOP Plan and overseeing its operations

Intellectual property encompasses a wide range of intangible assets legally owned and protected from unauthorized use or reproduction. IP includes trademarks, patents, copyrights, and trade secrets, and drive competitive advantage during innovation.

Multi-stakeholder cooperatives (MSCs) are co-ops that formally allow for governance by representatives of two or more “stakeholder” groups within the same organization, including consumers, producers, workers, volunteers or general community supporters

An ESOP that operates within a 401(k). Companies match employee contributions with stock rather than cash. KSOPs are considered defined-benefit plans, as companies that offer them can reduce the administrative expenses of operating separate ESOPs and 401(k) plans.

A Simple Agreement for Future Equity (SAFE) offer future equity rights without immediate valuation, making them popular for early-stage startup funding. These were introduced by Y-Combinator in 2013 and these convert into equity during funding rounds or acquisitions.