Capital Stack Modelling with Future Assumptions

Hi there. I hope someone can help me out or point me in the right direction here.

I’m looking for a model that is able to take a company’s current capital stack and then with some added assumptions tell me what a future capital stack would look like. I have all the data that would be necessary (I think).

I’m invested in a couple private companies via convertible debt. I’m just an individual investor and not with a VC fund. My background is commercial real estate finance. I’m working on an opportunity now but I’m having trouble seeing what 2-4 years down the road could look like in terms of company capital structure and investment returns. Previous investments were very simple seed rounds with minimal investors. This new opportunity is in the middle of seed and Series A and currently has convertible debt outstanding plus other equity investors and they’re adding more convertible debt.

The below link is something I’ve found for very general calculations but doesn’t give me a whole picture.

https://www.equidam.com/convertible-note-calculator/

I don’t need anything extremely precise. For this less straightforward opportunity, I know a lot about their roadmap, future capital needs, and possible future valuations/exit price. I just want to visualize/model it out so I can see if the future dilution is worth the risk. I think they will ultimately go through Series B/C before being bought out. I’d guess for a figure 10x their valuation cap in their convertible debt…but they’ll have to raise quite a bit more money to get there. 

I’d like to see what results would look like in multiple buyout scenarios.

Any help or insight is greatly appreciated. I’m not looking to take a course and try to build this myself. I’m willing to pay for existing resources if they exist and are reasonable.

Thanks,

PC. 

 

Ullam eos minima adipisci nemo labore. Consequuntur ut velit quasi atque deserunt est nisi.

Dignissimos amet quaerat repellat rerum id distinctio impedit. Nostrum omnis ad magni vel aut rerum sed. Rerum sed soluta enim est rerum quidem sit. Sit dolorem qui aut aut esse quia vero natus. Nihil iure veniam similique laudantium sint.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”