Blue sky, also known as goodwill, is the excess purchase price over the market value of a company's tangible assets as recorded on the balance sheet.
Loading content…
Browse detailed profiles, services, and insights from experts helping small and medium businesses plan successful transitions, including exiting through employee ownership.
Blue sky, also known as goodwill, is the excess purchase price over the market value of a company's tangible assets as recorded on the balance sheet.
Similar : EBITDA, Goodwill
PE
Private equity refers to capital investments made in companies or assets that are not publicly traded. PE investments are typically longer term and less liquid compared to mutual funds.
Similar : Roll-Up Strategy, Rollover Equity, Venture Capital, LBO
RSU
RSU is an award of stock shares, usually given as a form of employee compensation. The recipient must meet certain conditions before the RSU are transferred. RSU give employees interest in their employer's equity but have no tangible value until they are vested.
The biggest challenges faced by most EO sales are:
The business seller generally pays broker fees. Flat fees for a buyer can range anywhere from $5,000 to $25,000, depending on numerous factors such as the size of the deal and how involved the broker will be.
Liquidation value is the net worth of a company's physical assets if sold off during closure, including real estate, equipment, fixtures, and inventory. It excludes intangibles like intellectual property and goodwill. This metric is crucial in bankruptcy to gauge asset recovery.
Similar : Business Valuation, Book Value
Strategic buyers are generally less likely to close a business location post-acquisition (in the interest of maximizing synergy) compared to financial buyers, who may be more willing to make operational changes to improve profitability and returns on their investment.
Jumpstart Our Business Startups Act
The Jumpstart Our Business Startups (JOBS) Act, signed into law by President Obama on April 5, 2012, aims to ease SEC regulations on small businesses.
Similar : Mini IPO, SEC, Small Business
An investment club is a group of individuals who pool their money to make investments, typically organized as partnerships. Members collectively decide on investment actions, often after educational meetings where everyone participates in decision-making.
Similar : EO Financing
In worker cooperatives, each worker owns an equal share of the business. By paying a buy-in, and by fulfilling any other requirements outlined in the bylaws, a worker earns a share of the cooperative: Every worker-owner (or member) of the cooperative owns one equal share of the cooperative.
The appropriate time to sell your business depends more on the
Yes, fiduciary liability insurance, as well as life insurance, disability, director's and officers, and employment practices liability insurance.
ELBO
A conversion to EO facilitated by 3rd party financing (e.g., Apis & Heritage, Obran) and often accompanied by educational support services
Similar : LBO
The Co-op Principles (sometimes called Rochdale Principles) are a set of guidelines for the operation of cooperatives stewarded by the International Cooperative Alliance (ICA).
Similar : Co-op Principle 5, Co-op Principle 3, Co-op Principle 2, Co-op Principle 4, Co-op Principle 1, Co-op Principle 6, Co-op Principle 7
Qualified Replacement Property
Qualified replacement properties must be securities issued by U.S. operating corporations. Examples of qualified replacement property include common stock, preferred stock, convertible bonds, and corporate fixed rate notes, and corporate floating rate notes.
Similar : 1042 rollover
Real estate that is owned and controlled by its residents, whether that be on a full (market) equity, limited equity, or zero equity basis.
a rigorous systems approach to the future that helps people find agency in their own expertise to be better prepared in uncertain times
Patronage Distribution
A distribution of profits from a cooperative to its members or investors, based on their use of the co-op's services or product purchases.
Similar : Union Worker Co-op
Employee Equity Investment Act
The Employee Equity Investment Act (EEIA) aims to use the SBA's SBIC program to guarantee loans for investment funds supporting employee ownership.
Similar : Small Business Investment Company, SBA, Small Business
Often strategic or financial buyers do require 100% business sales, however either ESOP's or EOT's (or in some special cases, worker co-ops) you can transition the ownership of your business in stages (or "tranches") which allows you to transition on your own timeline.
Showing 361 to 390 of 2,133 results