Liquidation
Liquidation is the process by which a company is wound up — its assets are sold or distributed, its liabilities are settled, and any residual proceeds are paid to shareholders in priority order.
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Liquidation is the process by which a company is wound up — its assets are sold or distributed, its liabilities are settled, and any residual proceeds are paid to shareholders in priority order.
Customer Acquisition Cost (CAC) is the total fully-loaded cost of acquiring one paying customer over a defined period.
Lifetime Value of Customer (LTV or CLTV) is the predicted total net contribution a customer will generate across the entire customer relationship. LTV is the demand-side anchor of unit economics: every customer acquisition decision should be evaluated against an honest LTV estimate.
A lifestyle business is a company built and operated primarily to sustain the founder’s preferred income, work pattern and quality of life — not to maximise growth, exit value or external return.
Licensing is a commercial arrangement in which one party (the licensor) grants another party (the licensee) the right to use, produce, distribute or sublicense intellectual property, technology, brand or content — in exchange for a fee, royalty or other consideration.
A liability is a present obligation of the company arising from past events, the settlement of which is expected to result in an outflow of resources. Under IFRS (the Conceptual Framework, IAS 1) and US GAAP, liabilities appear on the balance sheet opposite assets, classified by maturity.
A leveraged buyout (LBO) is an acquisition in which the buyer (typically a private equity firm) finances most of the purchase price with debt — often 50-80% of the deal value. The acquired company’s assets and cash flows serve as collateral and the primary source of debt service.
The lead investor is the venture capital firm (or, less commonly, the angel/syndicate) that anchors a financing round — typically committing the largest share, setting the valuation and key terms, conducting in-depth due diligence and taking a board seat.
Golden handcuffs are financial incentives designed to keep an employee or executive at a company by making departure expensive — typically large stock-option grants vesting over years, deferred bonuses, restricted-stock units with cliffs and long-term incentive plans.
Going private is the transaction in which a publicly-traded company is taken off the stock exchange — typically by a buyout from a private equity firm, the management team, the founders, or a strategic acquirer.