The team of advisors who will help the selling owner to transition the business to its new owners.

Also known as the "death tax," a tax that's levied on a dead person's inherited assets. Ranges from rates of 18% to 40% and generally only applies to assets over $13.61 million in 2024. Thirteen states levy an estate tax. Thresholds can vary from state to state.

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An employee’s earned ownership of a retirement benefit plan over time

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.

The persistent difference in accumulated wealth between white households and households of color in the United States. Broadening who owns businesses, including through employee ownership, is often discussed as one way to help narrow it.

Compensation for key executives that attract, motivate, and retain the right people, while aligning executive goals with the goals of the company.

Overhead is an accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Also known as “indirect expenses” or “indirect costs”.

Form 1099-PATR, Taxable Distributions Received From Cooperative, is a form sent to taxpayers to allow them to report distributions received from a cooperative.

also known as a union, labor organization, or trade union, is a group of employees in a certain trade, industry, or corporation that organize to improve their salary, benefits, and working conditions.

The departure of an executive and the recruitment, hiring, and installation of a new executive

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 private company owned by two or more related family members.

Typically a company's profit and loss (income statement), balance sheet, and statement of cash flows.

Patient, flexible, risk-tolerant money that accepts a lower or slower return to make a deal possible that ordinary market capital would pass on. It often fills the financing gap in an employee-ownership transition.

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.

A variety of terms for individuals who have been incarcerated, and who may face employment barriers as a result.

Also called "worker owner," or "participant" (depending on the EO context), an employee owner is an owning participant in an employee owned business.

Investing aimed at a specific city, region, or community so the money and its benefits stay local. Several employee-ownership funds use this approach to keep businesses and jobs rooted where they already are.

A shareholder is a person, company, or institution that owns at least one share of a company’s stock or a share of a mutual fund. Shareholders essentially own the company, which comes with the right to share in the profits.

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.

Surety is a type of financial guarantee.

Annual testing for an ESOP that the amount of employer contributions to direct contribution plans that can be deducted each year, according to IRC Section 404(a)(3), is 25% of the compensation of the plan participants.

An idea, practice, or material artifact perceived as new by the relevant unit of adoption, e.g., a company

Feelings of or a sense of ownership

Jobs that pay a living wage and offer stability, benefits, and a real path to build wealth, not just an hourly rate. Employee ownership is one way owners try to turn ordinary jobs into quality ones.

An examination of records or financial accounts to check their accuracy.

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

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.

The Davis-Bacon Act requires that all contractors and subcontractors performing construction, alteration excess of $2,000 pay their laborers and mechanics not less than the prevailing wage and fringe benefits