Employee prosperity refers to the wealth an employee can accumulate as an employee of a company, such as through ESOP stock allocation, worker co-op capital accounts, or EOT profit sharing

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

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.

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

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.

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.

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

A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank.

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.

An autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise

Asset-based lending involves providing loans secured by collateral, typically used by businesses to cover short-term cash flow needs. Collateral for these loans can include inventory, accounts receivable, equipment, or other owned property.

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

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

Post Growth Entrepreneurship (PGE) redefines business as an avenue for activism, art, spirituality, and creative expression. It promotes sustainable business practices that prioritize social and environmental impact over traditional growth metrics like scaling and investor returns.

Wealth inequality is a global phenomenon in which the rich are growing richer, and the poor poorer.

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.

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.

An EO transaction in which < 100% of the company stock is sold to employee owners, whether through installation of a trust, or a new worker-owned co-op. This has strategic and taxation considerations.

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

A US Government agency whose mission is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and to enforce the law with integrity and fairness to all.

EBSA ensures the security of the retirement, health, and other job-based benefits of America's workers and their families; they develop effective regulations, assisting and educating workers, plan sponsors, fiduciaries, and service providers, and vigorously enforce the law.

E2C advocates for an alternative approach to the traditional startup exit strategy of acquisition or IPO. E2C proposes that startups mature into community ownership, where stakeholders collectively own and govern the company.

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.

Consumer cooperatives are owned by the people who do business there

A NSO is a type of employee stock option wherein you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option. They are called non-qualified because they do not meet the requirements of the IRC to be qualified as ISOs.

Key Performance Indicators (KPIs) are essential metrics used to evaluate a company's overall performance in strategic, financial, and operational terms. They quantify success against targets or industry benchmarks, guiding strategic decisions.

The fixed asset turnover ratio measures how effectively a company uses its fixed assets, like property and equipment, to generate sales. It's calculated by dividing net sales by the average balance of fixed assets.

a rigorous systems approach to the future that helps people find agency in their own expertise to be better prepared in uncertain times

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 tuck-in acquisition occurs when a larger company integrates a smaller company entirely, incorporating its technology, intellectual property, and operational setup into its own operations. These acquisitions aim to strengthen the acquirer's market position or improve reosurces.