E – Boodle Hatfield – Drive.law

EBITDA Earnings before interest, tax, depreciation and amortisation. Also known as Net Operating Income. Equivalent to Gross Operating Profit less all Management Fees and Non-Operating Income and Expenses. ... read more

EMI Option A Share Option granted under the Enterprise Management Incentive scheme, a tax-efficient Share Option scheme sanctioned by HMRC and to which certain qualifying rules and restrictions apply. EMI schemes allow early stage... read more

Enterprise Investment Scheme (EIS) A popular HMRC scheme designed to promote investment in growing private businesses through the use of investor tax reliefs. Under EIS, a qualifying ‘knowledge intensive’ company can receive up to £10 million a year in new investment. ... read more

Entrepreneur’s Relief A popular UK tax relief which reduces the standard rate of capital gains tax to 10% on gains made on the disposal of qualifying assets (such as ordinary share capital in a trading company). Certain conditions apply, such as (i) a minimum o... read more

Equity An ownership share in a business. If the business is a limited company then the equity is divided into shares. If the business is a Limited Liability Partnership (LLP) or a limited partnership (LP), the equity is divided into mem... read more

Equity Kicker A Warrant or Share Option that is attached to a loan to a Company giving the lender the right to acquire some Equity in that company. ... read more

Exclusivity Period Sometimes referred to as Lock-out or No Shop period, a period of time requested by a prospective investor in which it can carry out its Due Diligence on a company and negotiate the related investment documents. During the Exclusivity Perio... read more

Exercise Notice A form that must be completed and returned to the company, along with the Exercise Price, in order to exercise a Share Option or a Warrant. ... read more

Exercise Price Also called the Strike Price, the amount that must be paid to convert vested Share Options or Warrants into shares in the company. Often, the Exercise Price will be the accepted market value of the company’s shares on the date the Sha... read more

Exit Event (also Liquidity Event) ... read more