The threshold rate of return is the minimum return that an investor can expect to achieve when investing in a project. It is influenced by the risk of the investment, the liquidity of the investment, and inflation

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 micro acquisition involves a larger company purchasing a smaller firm, typically characterized by its smaller scale compared to traditional M&A. These acquisitions are driven by various synergistic motives such as acquiring talent, gaining access to new technologies, etc.

Purchase price allocation is the process of dividing the total purchase price of a business among its individual assets for tax purposes.

An accredited investor is an individual or business entity that's allowed to trade securities that may not be registered with financial authorities by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience.

SBA’s primary business loan program, provides loan guaranties to lenders that allow them to provide financial help for small businesses. The maximum loan amount is $5MM. Key eligibility factors are based on the business's good or service, credit history, and location.

A "poison pill" is a defensive strategy used by companies to deter hostile takeovers. It sets a trigger point, typically a threshold of stock ownership, beyond which any acquiring shareholder faces significant dilution of their stake.

Any unique EO company considerations in the appraising of company value, e.g., ensuring rigor that would satisfy regulators in an ESOP appraisal

A line of credit, abbreviated as LOC, is an arrangement between a financial institution, usually a bank, and a customer that establishes a maximum amount that the institution will allow the borrower to access or maintain. Unlike a loan, which is typically a one-time thing, a line of credit remains open. It’s like a pool of money you can dip into that’s not yours.

Case studies of companies who were previously EO and demutualized, sold to a strategic or financial buyer, or closed.

410(b) coverage testing is a type of compliance test certain qualified retirement plans (e.g., ESOPs) must undergo each year to ensure their plan doesn’t overly favor highly compensated employees (HCEs) over non-highly compensated employees (NHCEs) when it comes to who is eligible to participate in the plan.

Common stock is not just a piece of paper—or, these days, a digital entry—but a ticket to ownership in a company

A sub-plan created as part of the overarching succession plan which specifically defines things like key stakeholders to be notified of the succession plan, and sample copy and/or graphics for how the succession plan will be communicated.

Non-extractive finance flips the power relationship of lender and lendee, making sure that a borrower will never be worse off after working with a lender than before working with them.

Amortization is the gradual repayment of a debt over a period of time, such as monthly payments on a mortgage loan or credit card balance. To amortize a loan, your payments must be large enough to pay not only the interest that has accrued but also to reduce the principal you owe.

The pattern of inflows and outflows of money, such as income from sales and expenses paid out, and the resulting availability of cash in the bank.

An invoice, bill, or tab is a commercial document issued by a seller to a buyer. The invoices documents the sale transaction and indicates the products, quantities, and agreed prices for products or services the seller provided.

The amount of money in an account at the beginning of a period, especially a month or year.

A vision of the economy in which far more people share in owning the businesses they work for or buy from, instead of ownership staying concentrated in a few hands. Employee ownership is one path toward it.

A decision making process that rather than voting that is committed to finding decisions that everyone actively supports, or at least can live with. All decisions are made with the consent of everyone involved, to ensure that all opinions, ideas, and concerns are taken into account.

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To write off means to reduce value. Businesses will occasionally reduce the value of certain assets by writing them off, such as writing off unpaid and uncollectable invoices as bad debt. Taxpayers may also reduce their taxable income by writing off certain expenses.

The balance of an account, such as a bank or credit card account, at the

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The employees at a company who are Black, Latino, Asian, Indigenous, or otherwise people of color. Some employee-ownership funds focus on businesses whose workforces are mostly people of color.

An arrangement which allows for the loan amount to be withdrawn, repaid, and

Proxy voting is a form of voting whereby a member of a decision-making body may delegate their voting power to a representative, to enable a vote in absence.

Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.

EO companies, and ESOPs in particular, have some reporting duties pertaining to the sponsoring company, e.g., financial statements containing the # of shares held by the ESOP, fair value of unearned shares, total of repurchase obligations, etc.

A statement given buy a seller to a buyer itemizing the sale and demanding payment. A bill may be for the sale of a good or a service.