Complex Capital Allocation Model (without Macros)
Originally published: 10/06/2021 07:07
Publication number: ELQ-61221-1
View all versions & Certificate

Complex Capital Allocation Model (without Macros)

Complex Capital Allocation Model (without Macros)

This macro-free model is an extremely valuable tool for financial analysts, business valuators, private equity investors, auditors and other financial professionals who are working with a business that has a complex capital structure.

Using only standardized inputs, this model allocates business value across multiple classes of stock with different economic rights / preferences under the Option Pricing (Black-Scholes) and Current Value Methods. This model may also be used to iteratively solve for the implied value of a business with a complex capital structure given a recent capital raise (i.e., business valuation under the Backsolve Method).

Capabilities include complex capital allocation across a maximum of 40 different classes of stock or derivative instruments. Preferred stock, common stock, options and / or warrants can all be considered within this model.

All of the most common (and some of the less common) economic rights/preferences are included in this model:

1. Preferred stock features include liquidation preferences, cumulative preferred dividends, participation rights, participation caps and conversion rights. For each class of preferred stock, five separate liquidation preferences can be entered, each with its own individual liquidation multiplier (in order to account for senior as well as any additional junior liquidation preferences). Separate conversion ratios can also be entered for preferred stock conversion rights and participation rights.

2. Option / Warrant features including conversion ratio and strike (exercise) price.

Manual overrides are also available for many input fields.

This Best Practice includes
1 Excel Workbook (without Macros)

Acquire business license for $185.00

Add to cart

Add to bookmarks



  • Be the first to review this Downloadable Best Practice

    Write a review


Any questions on Complex Capital Allocation Model (without Macros)?

The user community and author are here to help. Go ahead!

0.0 / 5 (0 votes)

please wait...