Convertible preferred stock carries the characteristics of common stock and debt. It provides a stated reasonable dividend and converts to common stock at a specified time.

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds.

A business broker facilitates the sale of a business by representing the buyer or seller.

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

A registered investment advisor (RIA) is a financial professional firm that advises clients on securities investments and may manage their financial portfolios. RIAs are registered with either the Securities and Exchange Commission (SEC) or state securities administrators.

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.

Distressed assets, undervalued due to financial difficulties of current owners, present investment opportunities in real estate during economic downturns or specific market conditions.

When employees are given an option, and they decide to, laterally transfer 401k assets to finance the ESOP transition. This results in more cash made available to the selling owner at the time of closing.

The first certification for small business exit planners, specifically tailored to the needs of employee ownership sales. Created/certified by Project Equity.

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

Gradual reduction in the value of a fixed asset. Because depreciation happens to non-cash assets, like a vehicle or piece of machinery, it can be used as a tax write-off; that is, a person or company may reduce their taxable income by the amount of the depreciation on the asset.

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.

Fiduciary liability insurance protects an organization's fiduciaries (such as directors, officers, and trustees) against claims made by employees or other stakeholders for alleged breaches of fiduciary duty.

Junior capital defines any non-senior type of debt capital, including mezzanine debt or equity; it is at the risk capital level and generally not secured by assets, i.e., if the company does not achieve its goals the investor’s capital has a high degree of risk of loss.

A US Government department designed to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Earnings in a regular corporation are double-taxed—the corporation pays income tax on the net earnings, and then the shareholders pay income tax when they receive dividends on those earnings. In contrast, under Subchapter T of the Internal Revenue Code, a cooperative can avoid some of the traditional corporate double-tax.

The price the EO plan paid for the shares when first acquired, including it they were acquired with debt and then released later at higher or lower values. Four methods that can be used in computing the cost basis of the employers securities in the ESOP.

A corporation is a legal entity that is separate and distinct from its owners. Corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

an arrangement in which the company that sells an asset can lease back that same asset from the purchaser

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.

Cost of capital is a calculation of the minimum return that would be necessary in order to justify undertaking a capital budgeting project, such as building a new factory. It is an evaluation of whether a projected decision can be justified by its cost.

Pertaining to unique EO considerations for businesses in Washington state such as tax or other incentives

The evaluation of different types of employee ownership by a selling owner, and making a choice between them based on the relative strengths and weaknesses of each type.

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.

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.

A viewpoint of doubtfulness pertaining to one or more of the merits of becoming an EO company, typically net resulting in the viewpoint that EO is not a wise exit option.

Pertaining to unique EO considerations for businesses in Colorado such as tax or other incentives

Any fees or dues required in order for a company to become EO, e.g., the cost of a formal 3rd party valuation.

Pertaining to unique EO considerations for businesses in Iowa such as tax or other incentives

The Perpetual Purpose Trust (PPT) is a non-charitable trust that is established for the benefit of a purpose rather than a person. An Employee Ownership Trust (EOT) is an example of a PPT.