Collateral is a debtor’s asset that the debtor allows a creditor to have rights to until the debtor’s obligations are satisfied. A company can grant collateral in any of its assets, but most often collateral is granted in inventory or […]
The Closing Documents are documents such as assignments, bills of sale, Treasury certificates, officer certificates, closing statement, funds flow statement, bring down certificates, and similar documentation signed at closing by the parties. These documents assist in transferring assets, confirming closing […]
The Closing Date is the official closing date of a transaction. Typically the date when the first payment is made by the Buyer/Purchaser, and most (or all) of the assets or ownership of the Seller are transferred.
A Closing is the date, sometimes specific time, and process by which a transaction will be completed.
Churn Rate is the loss of future revenue due to the loss of a customer/subscription. There are two types of churn: Gross Churn and Net Revenue Churn. Gross Churn: MRR lost in a given month/MRR at the beginning of the […]
The Chief Executive Officer (CEO) is typically the head-honcho of the company. In the context of a startup, “president” and “CEO” are usually synonymous.
A Change in Control (or Change of Control) transaction is one whereby the owners of a company prior to a transaction no longer own a majority of the shares after the transaction.
A Certificate of Incorporation is a state filing that creates a corporation once filed with the secretary of state. The filing informs the secretary of state about the name the company plans to operate under, whom the state can serve […]
A Certificate of Formation is a legal document that is filed in Texas with the secretary of state to create a corporation, limited liability company, and similar entities. Certificates of formation will contain the entity’s basic information (name, registered agent, […]
A C-Corporation is a legal entity that allows for limited liability. C-Corporations are legally considered separate entities from their owners. Income is taxed at the corporate level and is taxed again when it is distributed to owners, potentially resulting in […]