The Useful Flexibility of Royalties Is Not Always Understood

Therefore, perhaps overly simplistically, the following is presented:

Revenue royalties are a negotiated percentage of a royalty issuer’s revenues.

Royalty payment periods are negotiated.

The royalty rate of the percentage of revenues is negotiated.

Other terms protecting royalty investors are negotiated.

Royalties can be redeemable by issuers on agreed terms.

Royalties can be assured, capped, or have minimum payments.

Royalties do not dilute the ownership of the issuing company.

Royalty investors are only focused on revenues, not reported profits.

Royalties should be structured to provide superior investor returns.

Royalties allow company owners to fully benefit from increased profits and resulting valuations.

Royalties are the better way of both investing in and financing of privately owned companies.


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