Evaluate Your Private Equity Investments

• Are your portfolio or client companies preparing to negotiate a new round of financing, or an acquisition or sale of the company?

• How will the terms of the transaction affect the distribution of proceeds that you or your clients will receive from an acquisition of the company or from a potential future acquisition?

• What are the critical points of merger consideration or sale price, which can cause significant changes in the distribution that you or your clients will receive?

Determining or modeling the distribution of acquisition proceeds back to the security holders is one of the more daunting tasks in a transaction. Hours are spent constructing spreadsheets to analyze the effects of liquidation preference, capped participation, accreting dividends, management carve outs, and vested options and warrants upon the potential distribution to investors. Each spreadsheet model must be manually manipulated every time the deal terms change, or separately constructed for each potential “cut” or estimate of total acquisition proceeds.