Founders WorkBench
Build Capital Calculator Liquidation Calculator Document Driver

Liquidation Calculator

The Liquidation Calculator enables you to determine the proceeds to stakeholders under various exit scenarios. If you are currently raising money or interested in comparing scenarios based on various funding options, we recommend you visit our Capital Calculator as well.

CALCULATE EXIT PROCEEDS

We see that you have visited the Capital Calculator, so we have taken certain values into account, given your company's capital structure. Rather start fresh?

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1

Please enter the following information based on the company's current capital structure

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Select One
Non-Participating Preferred

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X
Participating Preferred

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X
Capped Participating Preferred

Please select one of the options above.

X

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X

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2
Please enter the proposed deal terms in the fields provided below.  More than one scenario may be entered.

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Clear Inputs
Implied Multiples
EV / Revenue
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Input Required
EV / EBITDA
{{formatNumbers(scenarios['one'].results.valuationNumbers[1].value, '0,0.00', 'x')}}
Input Required
Preferred Return Multiple
{{formatNumbers(scenarios['one'].results.valuationNumbers[2].value, '0,0.00', 'x')}}
Input Required

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Clear Inputs
Implied Multiples
EV / Revenue
{{formatNumbers(scenarios['two'].results.valuationNumbers[0].value, '0,0.00', 'x')}}
Input Required
EV / EBITDA
{{formatNumbers(scenarios['two'].results.valuationNumbers[1].value, '0,0.00', 'x')}}
Input Required
Preferred Return Multiple
{{formatNumbers(scenarios['two'].results.valuationNumbers[2].value, '0,0.00', 'x')}}
Input Required

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Clear Inputs
Implied Multiples
EV / Revenue
{{formatNumbers(scenarios['three'].results.valuationNumbers[0].value, '0,0.00', 'x')}}
Input Required
EV / EBITDA
{{formatNumbers(scenarios['three'].results.valuationNumbers[1].value, '0,0.00', 'x')}}
Input Required
Preferred Return Multiple
{{formatNumbers(scenarios['three'].results.valuationNumbers[2].value, '0,0.00', 'x')}}
Input Required

Liquidation Proceeds

Enter information in Scenario 1 to generate report

Options
Preferred
Common
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Calculator Assumptions
  1. It is assumed that the company has one series of preferred stock already outstanding with no dividends accrued.
  2. There is assumed to be a single tranche of options outstanding, which can be entered directly or automatically carried over from the Capital Calculator in an amount equal to the size of the Option Pool. It is further assumed that convertible debt outstanding has been converted into the type of security offered in that round, with all the same features, including the Liquidation Preference Per Share
  3. All stock and options are assumed to be fully vested and eligible for proceeds at the time of the transaction.
  4. It is assumed that any outstanding debt at the time of the transaction has no conversion feature and that the conversion ratio on existing equity is equal to 1.
  5. The calculations do not take into account escrows, earn-outs or other contingent payments.
  6. The Preferred Return Multiple assumes that all preferred equity, including converting notes, carries a cost equal to the Original Issue Price.
  7. All references to currency are in USD.
X
Please double check all input fields. The current combination of variables cannot be calculated as entered.