What is a Non-Disclosure Agreement (NDA)? A Non-Disclosure Agreement (NDA) is a document that is exchanged between a prospective buyer and a seller in the initial stages of an M&A transaction. The document is exchanged after the prospective buyer shows interest in a company after looking at the teaser of the target. The objective of…
What is Trade Credit? A trade credit is an agreement or understanding between agents engaged in business with each other that allows the exchange of goods and services without any immediate exchange of money. When the seller of goods or services allows the buyer to pay for the goods or services at a later date,…
What is a Tax Haven? A tax haven, or offshore financial center, is any country or jurisdiction that offers minimal tax liability to foreign individuals and businesses. Tax havens do not require businesses to operate out of their country or the individuals to reside in their country to receive tax benefits. Criteria for Tax Havens In…
Federal Deposit Insurance Corporation (FDIC) The Federal Deposit Insurance Corporation (FDIC) is a US government institution that provides deposit insurance against bank failure. The body was created during the Great Depression when the public had lost trust in the banking system. Prior to its formation, a third of US banks had collapsed, leading to the…
A Quick Guide to Startup Funding Raising money from a Venture Capital (VC) firm is extremely challenging. The odds of receiving an equity check from Andreessen Horowitz is just 0.7% (see below), and the chances of your startup being successful after that are only 8%. Combined, that’s a 0.05% or 1 in 2000 success rate….
What is a Real Estate Joint Venture (JV)? A real estate joint venture (JV) is a deal between multiple parties to work together and combine resources to develop a real estate project. Most large projects are financed and developed as a result of real estate joint ventures. JVs allow real estate operators (individuals with extensive…
What Does Altcoin Mean? Altcoin originally refers to all digital cryptocurrency launched following the success of Bitcoin; hence the name, which means “alternative to Bitcoin”. However, more recently, the term Altcoin has increasingly been used to classify another other than Bitcoin and Ethereum. Nowadays, there are thousands of Altcoins with new projects being launched daily….
What is Money Laundering? Money laundering is a process that criminals use in an attempt to hide the illegal source of their income. By passing money through complex transfers and transactions, or through a series of businesses, the money is “cleaned” of its illegitimate origin and made to appear as legitimate business profits. The Need…
What is Mothballing? As it relates to business, mothballing is the practice of taking certain assets, equipment, and/or production facilities out of operation. The equipment and facilities should still be effective operationally, meaning they aren’t being deactivated or taken out of use because they no longer function properly. The primary purpose of mothballing is preservation…
