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.
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