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A buyer-originated document through which the buyer expresses its intent to buy the subject business.

An SBIC is a privately-owned investment company that is licensed by the Small Business Administration (SBA). Small business investment companies supply small companies with both equity and debt financing. They provide a viable alternative to venture capital firms for many small enterprises seeking startup capital.

A giving account at a public charity. The donor contributes, takes an immediate tax deduction, and recommends grants to charities over time.

The Aspen Institute's Job Quality Fellowship brings together leaders from differing lines of work, in communities across the country, who are working to expand the availability of better quality jobs.

A Decentralized Autonomous Organization (DAO) is a blockchain-based entity with no central authority, where token holders collectively make decisions. Utilizing smart contracts, DAOs automate processes and ensure transparency, with all activities recorded on a blockchain.

Capital gains are the profits realized from the sale of a capital asset, where the tax rate depends on the duration the asset was held.

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.

Revenue-based financing (or royalty-based financing) lets businesses raise capital by offering investors a percentage of ongoing gross revenues in exchange for investment. Investors receive regular payments until a set amount, usually 3-5 times the initial investment, is repaid.

A warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase a specific number of shares at a predetermined price (strike price) by a certain time (exercise date).

A Special Purpose Vehicle (SPV), also known as SPE or Special Purpose Entities, is a subsidiary created by a parent company to isolate financial risk. This separate legal entity ensures that its obligations remain secure even if the parent company faces bankruptcy.

Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. This often to applies to both the revenue and expense side of the profit and loss statement of the new combined business.

A company document that forms internal "laws" that determine how a firm will be run. Ordinarily, the details about the company structure is reflected in the bylaws, which are not usually filed with state officials and are thus easier to amend.

Business valuation, essential for sales, partnerships, taxes, and legal proceedings, determines a company's economic worth. This involves an in-depth analysis of management, financial structure, and future earnings potential to accurately assess the business's value.

The debt-to-equity (D/E) ratio is a crucial financial metric used to assess a company's financial leverage by dividing its total liabilities by shareholder equity. This ratio indicates the extent to which a company funds its operations through debt rather than its own resources.

Debt capacity is a measure of a company's ability to borrow and repay debt under agreed terms. Companies use debt for growth and asset acquisition, as high debt causes financial strain. Lenders evaluate debt capacity through financial metrics like balance sheet strength

A roll-up merger is when a private equity firm acquires several companies in the same industry and merges them to achieve economies of scale. By creating a larger, more efficient entity, these mergers aim to boost market presence, cut costs, and potentially raise profitability.

Return on Equity (ROE) measures a company's profitability by dividing net income by shareholders' equity. It indicates how effectively a company generates profits from its net assets. A higher ROE indicates better management efficiency in using equity for profit generation.

Diversification is a risk management strategy that creates a mix of various investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt to limit exposure to any single asset or risk.