CLTs are nonprofit, community-based organizations designed to ensure community stewardship of land.

In an ESOP or EOT transaction, the external loan is between the company and the selling shareholder; also, between the company and a financial lender, such as a bank, in externally financed transactions. The external loan is often reloaned as an internal loan to the Trust.

The factors that drive how salable the business will be after its near term succession, i.e., a follow up sale, such as post employee ownership conversion.

A business legacy means creating something enduring that can be passed on. This might be a physical business or work toward affecting change through a cause; it is not simply the “thing,” such as a startup or a product, but also its ability to endure through generations.

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.

An investor who raises capital on a deal by deal basis.

A determination letter, issued by the IRS, confirms whether an employer's employee benefit plan meets the legal standards for special tax treatment. This document is crucial for retirement plans and other benefit programs, ensuring compliance with laws like ERISA.

A Zebra Company represents a humane alternative to traditional tech unicorns. Unlike unicorns that prioritize maximizing shareholder value, zebras focus on principles like mutualism, shared property, and multi-stakeholder value.

The idea of popular education (often described as "education for critical consciousness") as a teaching methodology came from a Brazilian educator and writer named Paulo Freire, who was writing in the context of literacy education for poor and politically disempowered people in his country

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

A capitalization table, or cap table, details a company's equity structure—shareholders, types of equity (common, preferred, options, warrants), and their ownership percentages. It's vital for companies to track changes through funding rounds and shareholders shifts.

A financial metric that represents the difference between a company’s current assets and its current liabilities. NWC is defined as accounts receivable plus inventory minus accounts payable and accrued liabilities. NWC is often included in the purchase price of a business.

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

A social enterprise is defined as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs.

The accounts receivable turnover ratio assesses how efficiently a company collects its average accounts receivable balance. Calculated by dividing net credit sales by average accounts receivable, this ratio reflects how quickly credit sales are converted into cash

A CDC is a nonprofit, community-based organization with one-third of board typically composed of community residents focused on low-income, underserved neighborhoods.

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.

Net profit margin, or net margin, expresses a company's net income as a percentage of its revenue. This metric provides insight into how efficiently sales translate into actual profit after accounting for all expenses, including COGS, operational costs, interest, and taxes.

A C corporation (C corp) is a legal structure where the corporation and its owners (shareholders) are taxed separately, leading to double taxation on profits at both corporate and personal levels.

An SBIC is a privately-owned investment company that is licensed by the Small Business Administration (SBA). Small business investment companies supply small companies with both equity and debt financing. They provide a viable alternative to venture capital firms for many small enterprises seeking startup capital.

A chart of accounts is a list of categories that bookkeepers and accountants use to classify all accounting transactions. All accounts in the chart of accounts fall into one of the five categories: Income, Expense, Asset, Liability, or Equity.

Any risks uniquely pertaining to EO companies, e.g., repurchase obligation in ESOP companies

Microfinance, also called microcredit​, is a type of banking service provided to low-income individuals or groups who otherwise wouldn't have access to financial services. Microloans can range from as small as $50 to under $50,000.

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

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

Equity is found on the Balance Sheet and equals Assets minus Liabilities. In other words, it is the difference between what we own and what we owe. It can also be considered as net value, or the amount that would be left over if a company liquidated (i.e. turned into cash) all its assets and repaid all its debts.

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

ESG refers to the environmental, social, and governance factors that investors measure when analyzing a company's sustainability efforts from a holistic view

A convertible note is a temporary debt tool enabling investors to convert their loan into company equity. It postpones the valuation of the company until later rounds, like Series A, when more information is accessible.

The sense of dissatisfaction that former owners typically feel post-transition, after selling their business to a third party