Preparing fully diluted capitalization table
So I have been assigned to prepare the capitalization table for a company. I have read online about how a cap table works but there are practical aspects that aren't mentioned. Could someone help me out?
Where do I start? Do I email the CFO to ask for it?
How do I verify that the CFO did not mess up preparing it? Do I need to get lawyers to verify the cap table eg. how many series B preferred shares there are?
To prepare a fully diluted cap table, read shareholders agreement to get liquidation preferences and dilution mechanisms. The price per share / pre-money valuation discussed would affect the number of diluted shares outstanding. For example, it affects convertible bonds. Is my understanding correct?
Anything I missed?
Thank you.
Ipsam culpa asperiores quo doloremque atque illo vero. Animi voluptatibus quia earum nihil fugit ex nostrum nostrum. Omnis id placeat maiores deserunt. Nihil neque dolore libero commodi aut. Qui velit a placeat sunt quo nulla commodi. Tempora velit ea dolore earum laboriosam vitae fugit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...