Transaction structuring
Transaction Structuring
Entry, follow-on and exit mechanics for the illustrative investment. All calculations mirror the financial workbook.
Illustrative structure, not an available deal
There is no evidence that this price or structure is available, and the live terms and cap table are unknown. Edit inputs on the Interactive Valuation page.Entry
- Entry pre-money valuationAnalyst assumption, not market price
- $25.00m
- Initial investment
- $5.00m
- Post-money valuation
- $30.00m
- Initial ownershipIgnoring option pool and other securities
- 16.6667%
Follow-on (2029)
- Follow-on round sizeEntire round, not only the investor
- $20.00m
- Follow-on pre-money valuation
- $150.00m
- Follow-on post-money valuation
- $170.00m
- Pro-rata participationShare of pro-rata entitlement taken
- 100%
- Pro-rata follow-on investment
- $3.3333m
- Post-financing ownershipBefore later rounds / liquidation waterfall
- 16.6667%
- Total capital invested
- $8.3333m
Exit (2033) and investor returns
Exit costs 2.0% of enterprise value. Gross of fees and carry.
| Line | Bear | Base | Bull |
|---|---|---|---|
| 2033 annual revenue | $9.66m | $31.35m | $107.24m |
| Exit revenue multiple | 2.0x | 5.0x | 8.0x |
| Exit enterprise valuation | $19.32m | $156.75m | $857.88m |
| Transaction costs | $0.39m | $3.13m | $17.16m |
| Net exit value | $18.93m | $153.61m | $840.73m |
| Exit ownership | 16.6667% | 16.6667% | 16.6667% |
| Equity proceeds | $3.16m | $25.60m | $140.12m |
| Total capital invested | $8.33m | $8.33m | $8.33m |
| MOIC | 0.3786x | 3.0722x | 16.8145x |
| Gross IRR (cash-flow) | (15.8994%) | 20.5987% | 57.3977% |
| vs 25% hurdle | ✗ Below hurdle | ✗ Below hurdle | ✓ Clears hurdle |
Investor annual cash flows
Year-end convention; negative = capital invested. IRR is solved on these flows (not CAGR).
| Scenario | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 |
|---|---|---|---|---|---|---|---|---|
| Bear | ($5.00m) | $0.00m | $0.00m | ($3.33m) | $0.00m | $0.00m | $0.00m | $3.16m |
| Base | ($5.00m) | $0.00m | $0.00m | ($3.33m) | $0.00m | $0.00m | $0.00m | $25.60m |
| Bull | ($5.00m) | $0.00m | $0.00m | ($3.33m) | $0.00m | $0.00m | $0.00m | $140.12m |
Published mandate cross-check
Mandate is not proof that a specific deal is actionable E01
- Initial check $1m-$10m$5.00m ✓
- Minority stake of at least 5%16.7% ✓
- Reported ARR of $3m+ at entryCannot be tested: ARR unverified
- LTV/CAC above 3xNot available
Structure limitations (workbook)
- Security type
- Assumes fully diluted, common-equivalent preferred economics.
- Liquidation terms
- No preference waterfall modeled; actual term sheet unavailable.
- Further dilution
- No post-follow-on rounds modeled; higher dilution lowers returns.
- Net debt
- Zero assumed. Actual cash / liabilities undisclosed.