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Merger Waterfall

Waterfall Studio automates the math of M&A transactions

We leverage agreements in source documents (e.g. Cap Table, Term Sheet, COI) and dynamically incorporate expert inputs to show the impact of negotiations in real and planned M&A transactions.

 
Show an illustration of a chart with arrows coming in from left and top into a box with arrows flowing out to right and bottom and on to a ladder of boxes with many interconnections and lines-1

Companies are sold in all sorts of creative fractions

  • Acquisition / Dissolution - Sell entire company
  • Merger - Sell and trade parts of your company
  • Equity Financing - Sell shares in your company
  • Debt Financing - Sell obligations to pay before you can sell your company
  • Complex Transactions - Trade obligations and ownership to your company

Each Sale type triggers unique math

  • Ownership changes must be accurately tracked
  • Terms must be accurately honored for all stakeholders
  • Funds must be correctly allocated and distributed
ownership factors

Ownership can be hard to figure at closing

 

It’s typically impractical and unprofitable to obsess over ownership while operating a young business, and each layer of this onion is typically some added work for the dealmaker at the time of closing.

 

terms factors

Terms of the deal must face a lot of the past

 

Prior agreements with investors, employees and other stakeholders will guiding and constrain how the deal term sheet will apply

 

distribution factors

Distributions of stock or cash with various strings

 

Sale proceeds are in various forms, with unique terms for when and how they’ll manifest for each stakeholder

 

mw solution

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