MergeComp is a software tool for computing and modeling the waterfall distributions from a merger (or post-financing) back to security holders of a private VC-backed target company, where the capitalization structure may be complex, multi-layered, and difficult to compute with spreadsheet models.
MergeComp is a perfect tool for performing “what if” analyses, and determining the effects of different types of investment strategies.
MergeComp costs only $300 for each analysis — but you may run up to two additional analyses for the same company (within 3 days of the first analysis) at NO extra charge (a “3–in–3” benefit — perfect for modeling or “what if” exploring).
HERE’S HOW IT WORKS:
You send us your Summary Capitalization Data including:
liquidation preferences, participation, options, warrants, management bonus plan carve-outs, convertible notes, etc.
We send you the Waterfall Analysis Spreadsheet showing:
EACH point of sale value at which the distribution changes (due to caps, conversions, exercises, etc. – the “Transition Points”)
The distribution to each of the securities classes at each of the Transition Points
A cell where you can enter ANY SALES VALUE, and see the distributions to all security classes at that sales value
Charts and graphs of the distributions to all security classes
Who can benefit from MergeComp?
VC/PE firms investing in private companies
– evaluate your investment returns across all market values
Law firms servicing private companies
– accurately compute client distributions
Investment bankers servicing private companies
– understand key transition points of distribution
Acquirers acquiring private companies
– determine distributions to security holders
CEOs and CFOs of private companies
– compute your share of the acquisition proceeds
ARE YOU SUBJECT TO FAS 157 (TOPIC 820) REQUIREMENTS? MERGECOMP CAN HELP!
See the entire waterfall analysis for each portfolio company
Enter any market value estimate into the analysis – to see the distribution back to you
Easily perform multiple sensitivity analyses for each portfolio company