Glossary

ROE Equation

The return on equity (ROE) equation is used to calculate a company’s returns on capital raised through equity.
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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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Synergies
Financial synergies refer to the value created when two companies join together. If the two entities join up and create more value than when they operated separately, it’s considered synergy.
Pay-To-Play
Pay-to-play provisions are a form of safeguard for companies, helping to protect them from a downturn in market conditions.
Term Sheet
A non-binding document outlining the key terms and conditions of a proposed investment, used as a basis for negotiation between investors and a company.

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