Question: Please help I will upvote if correct Talltree is considering a $12M Series B investment in Newco with the structure of 5M shares of common
Talltree is considering a $12M Series B investment in Newco with the structure of 5M shares of common plus RP with $10M APP and a 2X liquidation preference. The flounder and employees have claims on 10M shares of common, and the Series A investors, EBV, have 10M shares of CP with $6M APP. Series B has a liquidation preference to Series A. Both Talltree and EBV receive carried interest of 20 percent and charge management fees of 2 percent per year for all 10 years. Compute the partial valuation equation for the Series A investors (EBV). Compute the partial valuation equation for the Series A investors (EBV) under this structure. partial valuation (Series A under Structure 1)=C(26)+2/5C(35) partial valuation (Series A under Structure 1)=C(20)C(26)+2/5C (35) partial valuation (Series A under Structure 1) =C(20)C(28)+3/5C (35) partial valuation (Series A under Structure 1)=C(10)C(26)+2/5C (30)
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