Venture & Debt Financing
If your business is ready to grow, outside financing might be worth investigating. Debt financing involves taking conventional bank loans to fund expansion. Venture financing involves finding outside partners who are interested in investing in your business through the sale of equity. Venture financing is a popular route for many startups, but involves additional important paperwork and legal disclosures, as well as detailed negotiations with potential investors.
Stock Purchase Agreement
A Stock Purchase Agreement is an agreement that details the terms related to the purchase and sale of shares in a company. It is different from an Asset Purchase Agreement where the assets (not the shares) of a company are being bought/sold.
Asset Purchase Agreement
An Asset Purchase agreement is an agreement between a buyer and a seller that details the terms related to the purchase and sale of a company's assets (not the shares).
A true merger involves the combination of existing business entities into one new business entity - a "merger" as the term is casually used, can involve stock purchase, and asset purchase agreements.
Employee Stock Ownership Plans
An employee stock ownership plan (ESOP) is a qualified defined-contribution employee benefit (ERISA) plan designed to invest primarily in the stock of the sponsoring employer. ESOPs are "qualified" in the sense that the ESOP's sponsoring company, the selling shareholder and participants receive various tax benefits.