M&A waterfall distribution for VC-backed company
Hello,
I'm a coverage banker at boutique M&A firm trying to find out how to create a waterfall/proceeds distribution model for an acquisition of a venture backed (for context: tech) company that has raised several rounds of equity financing. All the other forums I see on this topic are for private equity GP/LP distributions or for real estate. I suspect an M&A scenario is different because of different preferences and different rights among the different rounds of financing.
Ideally, I'm looking for step by step instructions that also define and discuss the treatment of the various ingredients in the model (such as liquidation rights and preferences). As much detail as I can get would be greatly appreciated! Basically assume I know nothing about the inputs or the model at all (which isn't true, but is sadly close to it).
Thanks!
This depends WILDLY on the terms of the investments. There are literally so many variables I can't even answer this question.
Provident eligendi voluptate est aut eius eum non fugiat. Voluptas qui sint repellendus. Ut delectus et earum corrupti soluta sint. Est amet aut rem nobis.
Labore sunt autem alias quis. Ut consequatur ut deserunt sit.
Maiores velit perferendis assumenda excepturi quidem. Optio et nulla qui similique rem aut ex. Totam esse eum harum architecto harum voluptas.
Et delectus amet accusantium voluptatibus. Dolorem placeat tempore qui dolore. Ut ad labore eius suscipit perspiciatis. Inventore voluptas impedit in aut.
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...