"The venture business on the East Coast is populated by ex-money people used to deals that discount cash flow and who use words like liquidation provisions," he says.
Of course, there are many more legal terms than the ones we've discussed throughout the series, but we selected terms like liquidation preferences and pro rata because they have the greatest bearing on the financial outcome of a company.
But, either way, googling archaic legal terms or going down the rabbit hole that is Quora trying to understand the likes of Liquidation Preference, Tag-along and Drag-along, isn't necessarily the best way for an entrepreneur to spend their time (although, perversely, I quite enjoyed it).
I assume the bad part would be slowly liquidated, using something like the liquidation trusts used in many large chapter 11 cases to sell off the junk over time.
"It feels like continued liquidation," Brian Edmonds, head of interest rates at Cantor Fitzgerald in New York, said.
"It's like a liquidation sale now, and the biggest issue is whether they will cut prices to move the inventory".
It's part of a continuum that started with the excesses of the dot com bubble, culminated with huge changes on Wall Street that hurt the ability for smaller companies to go public and the desire for entrepreneurs to take them public, and has been rippling through several trends like partial liquidations, secondary exchanges and buyouts.
The program also reviewed more advanced topics like raising money from strategic investors, equity versus SAFE financing, crooked deal terms like ratchets and liquidation preferences and how to manage your board.
He and his group would like to see a total liquidation of police, for example—as Georgia did after the Rose revolution, when it rebuilt its national police force from scratch.
Liquidation sites like Overstock and SmartBargains are heavily discounting products like down comforters, DVD players, Burberry scarves and Nicole Miller jackets.
Other countries, like Italy and Australia, enjoyed annual liquidation rates above 5%.
