Glossary

Earnings Before Interest & Taxes a.k.a. EBIT

EBIT, or Earnings Before Interest & Taxes, is a company's profit before income taxes. See also: Earnings Before Interest & Taxes & Depreciation & Amortisation

Earnings Before Interest & Taxes & Depreciation & Amortisation a.k.a. EBITDA

EBITDA, or Earnings Before Interest & Taxes, Depreciation, & Amortisation, is a formula for measuring a business's profitability. See also: Earnings Before Interest & Taxes

EBIT a.k.a. Earnings Before Interest & Taxes

EBIT, or Earnings Before Interest & Taxes, is a company's profit before income taxes.

EBITDA a.k.a. Earnings Before Interest & Taxes & Depreciation & Amortisation

EBITDA, or Earnings Before Interest & Taxes, Depreciation, & Amortisation, is a formula for measuring a business's profitability.

EIS a.k.a. Enterprise Investment Scheme

Otherwise known as EIS, the Enterprise Investment Scheme is a tax-relief scheme that helps small firms to fundraise and grow. In addition, EIS often encourages investments into riskier business ventures, giving startups a greater chances at succeeding.

EIS1

This is an EIS compliance statement, a form HMRC requires companies to fill out and return after EIS shares are issued. See also: SEIS1 EIS3

EIS3

For investors, EIS3 is a certificate from a company they invested in, confirming satisfaction of specific requirements within the Enterprise Investment Scheme. See also: SEIS3 EIS1

Elevator Pitch

An elevator pitch is a short, persuasive description of a business, idea or product. This pitch is so-called as it takes about the same time to deliver as a quick ride in an elevator.

Employee

Particularly at a non-executive level, an employee is someone who works for a salary, rather than a consultancy fee, and benefits from employment law rights .

Employee Option a.k.a. ESOP

An Employee Option is also known as Employee Stock Ownership Plan. It's a benefits scheme within the employee's company, allowing employees to have an equity interest in part or all of the group.

Enterprise Investment Scheme a.k.a. EIS

Otherwise known as EIS, the Enterprise Investment Scheme is a tax-relief scheme that helps small firms to fundraise and grow. In addition, EIS often encourages investments into riskier business ventures, giving startups a greater chances at succeeding.

Entrepreneurs Relief

Renamed to Business Asset Disposal Relief. See also: Capital Gains Tax Business Asset Disposal Relief

Equity

In the investment world, equity is how much shares given by a company are worth. In other words, equity is the monetary value of an investor's stake in a business.

ESOP a.k.a. Employee Option

An Employee Option is also known as Employee Stock Ownership Plan. It's a benefits scheme within the employee's company, allowing employees to have an equity interest in part or all of the group.

Exit

When an owner no longer has an equity interest in their business.

Exit Strategy

An exit strategy is a plan for founders to realise value in their business.