Hello everyone,
I'm just wandering do you need work out a Sources & Uses table in a Growth Capital model. Let's say the company raise a new round of money and have no old share sale. So how do you do the Sources & Uses?
My preliminary thought is that maybe we can add an item called "New Money" in the Uses part and the number must be positive. Then calculate all the sources including the new Cap Table. Am I right or there are better ways to do this?
Thanks
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Might not understand the question - wouldn't your Use be Purchase of Equity?
This is why people get $0 bonus at GS.
What happens when a company raises new equity capital? They issue shares. This is the same thing as an IPO/venture capital/growth equity/LBO any deal where new equity is issued.. New Shares issued...what is so tough about this?
Sources: Primary Shares Issued Uses: Cash to B/S
Done. Nothing else changes. This also assumes that you understand that sources have to equal uses.
Yup - I've seen questions like this asked a lot, but assumed that from a growth capital raise standpoint, what you're really looking at is amount of new equity put in (could be secondary, but for the sake of this discussion, I'm assuming primary investments most generally) which nets you % owned in the company (of which you've got to consider new shares issued, not just outstanding), followed by a standard 5 year operating model P&L/BS/CFS and exit at same % ownership. I guess there could be tricks thrown at you like if you accumulated dividends or if you were lower in the preference stack at exit than some other folks, but generally a pretty easy exercise?
Then again - I'm the one here with no offer and minimal interviews so far, so, I'll go fuck off back to my "Project Depression MPv31" that had some commas where there shouldn't have been.
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