Weighted Average

A weighted average assigns importance to values before calculating their average. This importance is represented mathematically by multiplying each value by its own predetermined "weight" number.

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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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Conglomerate

A conglomerate is a single corporation made up of smaller, merged companies. Companies acquired by or merged with a conglomerate become its subsidiaries. Holding companies that own controlling stock in a variety of businesses can also be considered conglomerates.

Financial Ratios

Financial ratios are numerical tools that compare the relationships between different figures on a company’s financial statement. There are dozens of different financial ratios that analysts and investors can use to determine the efficacy of an investment and the performance of a business.

Friendly Takeover

A friendly takeover happens when one company is willingly acquired by another. In a friendly takeover, the management and board of directors' consent to or approve the takeover. It’s important to note that the target company’s shareholders will still need to agree to the takeover.