A waterfall Scenario tool can be used to analyse liquidation preferences for a possible sale of the company, or another exit scenario. Using this model, you can evaluate the capital sensitivity of investors vs share class monetary values, the payouts to various investors and the summary for each security class.


To create a new waterfall scenario:


  1. Click Scenarios in the menu on the left.
  2. Click Perform New analysis.
  3. Select Waterfall.
  4. Type the Scenario Name.
  5. Enter the proposed Exit Value.
  6. Enter the proposed Non-Convertible Debt.
  7. Enter the proposed Project Exit Date.
  8. Click Perform Analysis.



Moving your cursor over this graph will show you the various possibilities.




Waterfall Scenario Screen

In QapMap, a waterfall scenario results page looks like this:



The platform allows you to easily see the projected payouts based on your preferred settings and assumptions. 


Here is a description of the Waterfall scenario screen: 



The results are displayed based on the set Exit Value, as well as confirmation of any non-convertible debt on company’s books.


The results page displays the projected payouts and can be displayed on investor or share class level.


The interactive chart allows you to complete sensitivity analysis for alternative Exit Values.



Liquidation preferences captured for each share class dictate the results shown, and are summarised in the Payout Summary table.