 Green
Weenies and Due Diligence
Green Weenies Sections
(Chapters 1 to 6)
Jargon and All the Stuff You Really Can’t Do Without
Bigger than a breadbox or smaller than a car – Often
used to describe costs, a market, or other operating factor when it’s
unknown or uncertain. The phrase can also be used to discuss an
opportunity or threat when little is known about it. It is typically said
when giving instructions, such as an attempt to help with researching or
understanding the situation, so that the next steps can be decided. I
often use this phrase when someone tells me something should be low cost,
as “low cost” can be subjective. In an early-stage discussion,
understanding whether the item is bigger than a car or smaller than a
breadbox can sometimes end a discussion and prevent wasted energy.
Use: “Greg thought the idea of selling the add-on product was a good one,
but no one really knew whether the market was bigger than a breadbox or
smaller than a car, so more studies were needed to decide if it was
feasible.”
Sharing teeth – This one cracks me up. Imagine
three old geezers, trying to eat dinner, but they only have one set of
teeth to share. Dinner will be slow, and it’s not a pretty imagine,
passing the teeth around. When you don’t have enough resources to go
around and you have to share, that’s sharing teeth.
Use: “The dismantlers were very inefficient as they
spent a lot of time standing around waiting for a forklift, since there
was only one for the six of them, and it was a lot like sharing teeth.”
Due Diligence Words
(Chapters 7-12)
These chapters just aren’t as much fun, and they
certainly don’t have much entertainment value. Some of these terms have
been defined in countless books. I have tried to include only those that I
recall using or those which are most important and likely to be needed by
the reader. Oddly, some words that are used commonly in transactions and
business don’t seem to be defined anywhere in previous business
dictionaries, such as “disclosure schedule” or “indemnification,” so I
have included them. I also haven’t provided example sentences as their
meanings are usually more obvious.
Clawback provision – A provision in an executive’s
employment agreement that entitles the company to take back some
compensation, or declare compensation not owed, under certain situations,
such as fraud. This has become more much prevalent in the last few years,
since the Enron and Adelphia debacles.
Some of the terms have a thumbnail of the illustration. if you want to view a larger version of the illustration, click the
image.
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