Mineral Rights

A provision that allows majority shareholders (or lead investors) to force minority shareholders to join in the sale of the company on the same terms. Drag-along rights prevent minority holders from blocking an exit that the majority supports.

The contractual right of existing shareholders to participate in future funding rounds on a pro-rata basis, maintaining their ownership percentage. Pre-emption rights protect early investors from dilution and are a standard provision in shareholders' agreements.

A provision that gives minority shareholders the right to join a transaction when a majority shareholder sells their stake, ensuring they can exit on the same terms and conditions. Tag-along rights protect minority investors from being left in a company after a controlling interest changes hands.

A valuation technique that estimates the value of an intangible asset by modelling the cash flows of a hypothetical business that starts from scratch ('greenfield') with only the subject asset in place, building up all other assets over time. The greenfield method captures the head-start value of having the intangible asset from inception.

A valuation methodology that estimates the value of an asset based on the present value of expected future economic benefits, such as cash flows, earnings, or cost savings. The income approach is the most widely used method for valuing intangible assets and includes techniques such as the relief-from-royalty and multi-period excess earnings methods.

A business arrangement in which two or more parties agree to pool resources for a specific project or business activity while maintaining their separate identities. Joint ventures often involve the sharing of intangible assets such as technology, brand rights, and market access, requiring careful valuation and allocation of contributed and created value.

The ownership stake held by a company's founders, typically established at incorporation and subject to dilution through subsequent funding rounds. Founders' equity is usually subject to vesting schedules and may carry different rights from investor shares, reflecting the intangible contribution of the founding team's vision and early-stage effort.

A market approach valuation technique that estimates the value of a subject company by reference to the prices paid in actual acquisitions of comparable businesses. The method involves identifying relevant transactions, extracting implied valuation multiples, adjusting for differences in timing, deal structure, and synergy expectations, and applying the adjusted multiples to the subject company.