Quiz
Exit waterfalls
A company gets acquired. Who gets paid, and in what order? Work through liquidation preferences, participation, and seniority, plus the cases you can't settle without more terms.
Question 1 of 10
A company is acquired for $30M. An investor holds 1x non-participating preferred: $4M invested, 20% as-converted. A common answer states what that investor walks away with.
A common answer
The investor converts to common and takes $6M, which is 20% of the $30M, since that beats their $4M preference.
How would you grade it?
How sure are you?