This is the accompanying template to our Liquidation Survival Guide Vol. 1.
The goal of this guide is to help entrepreneurs, venture capitalists, and any others who are entangled in the nitty gritty details of modeling complex liquidity situations.
For entrepreneurs raising new rounds and finding themselves with multiple term sheets with diverging valuations and structure, this guide and template will be crucial to understanding how each different scenario affects the bottom-line return to each class of shareholders during an eventual exit. For instance, you may get a lower valuation or even a down round, but that could actually provide better returns for you than a higher valuation with structure.
This guide is not for the novice, and if you need a refresher or a more general overview of common terms, check out this great article by our venture peer Charles Yu. For companies currently going through an M&A process, this guide will be more practical than theoretical. This is not meant to be exhaustive but to provide you with a core level of understanding and a foundational template that can be modified to handle any scenario that comes your way.
