Demystifying Equity, Maximizing Founder Value
David's company, with $2 million in annual recurring revenue, is at a crucial juncture. He's holding a significant number of RSUs which vest based on performance and time, adding complexity to valuing his potential payout in an acquisition scenario versus the long-term potential of a Series A raise. He needs a clear understanding of his net asset value to confidently evaluate competing offers and make the best strategic decision for his future.
By utilizing the NAV Calculator, David can determine the net asset value per share of his RSUs, factoring in vesting schedules, potential acquisition price, and tax implications. Running various scenarios, he discovers that a specific acquisition offer, initially appearing less attractive, could potentially yield a higher net asset value of $750,000 after tax due to favorable vesting terms and immediate liquidity compared to waiting for a Series A with uncertain returns.
The NAV Calculator allows David to input the current share price, number of shares, liabilities, and assets to determine the net asset value per share. Companion calculators like the Tax Equivalent Yield Calculator further refine the analysis by considering the tax implications of different exit strategies.
$750,000 post-tax net asset value after acquisition, facilitating optimal decision-making.
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