The Exit Scenario Planner is an exploratory tool that allows you to envision how your company’s exit may look regarding company ownership and investment. The Exit Scenario Planner lets you model different outcomes for you and your stockholders based on various deal terms. What’s more, your data room works just as well for acquisition diligence as it does for financing diligence.
This article will introduce you to the various capabilities of the Exit Scenario Planner, but for specific scenario questions, we recommend emailing your Customer Success Manager or our support team.
To begin, open the Exit Scenario Planner right from your main dashboard, under the Company workspace:
As you can see in the screenshot below, you can easily reset the report or export it to review in detail or share with your counsel. The projected exit amount is pre-populated by default using the data taken from your account, but this information can be customized as you work your way through the planner, as can the date of a proposed exit transaction:
Now let's discuss each section of the Exit Scenario Planner in depth:
There are many areas in this section that you can edit and/or customize:
- Use the green pencil edit icon to change the outstanding shares and the conversion price per share. Any modifications to this stock class will be made in conjunction with future investments.
- Add a new stock class by entering in the class name, new investment amount, the pre-money valuation, the liquidation preference, the anti-dilution information as it relates to the liquidation preference, the date of the investment, and whether or not you'd like to override the system-calculated original issue and conversion pricing. This is helpful for envisioning what an exit will look like after another planned round of financing.
- Modify the liquidation stack by dragging and dropping each stock class as needed.
- Customize pro-rata settings like:
- calculation method
- round pricing methodology
- share price decimal places
- rounding method for share prices and investor shares
- investor and key holder ownership percentages
- shadow classes for SAFEs and Bridge Notes as necessary
- stock plan pool usage at exit (this is especially important, as deal terms often vary when it comes to how and whether stock options and the pool itself will be counted)
Investors & Key Holders
This section allows for you to add new investors by clicking the button that says "Add Investor". You will also see current investors and key holders listed, based in the existing Shoobx data. Use the orange pencil edit icon to record new investments or pro-rata investments, if applicable.
Debt & Alternatives
SAFE and Note holders will be listed here, along with the related SAFE and Note Agreements. Use the green pencil edit icon to indicate if a given debt or alternative will convert as part of the next financing and for SAFEs, and Shoobx will provide their share numbers and if applicable, an interest dollar amount.
Capture or edit any estimated non-convertible debt here. This includes things like bank debt, bank fees, legal fees, and other fees.
We suggest you jump in there and play around so you can get comfortable using the Exit Scenario Planner. As we show above, you can reset everything with a click of a button and you can also export the report when you're done.
Screenshots are for Illustrative Purposes Only.
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