Know Who Gets What at Every Exit Price
Liquidation preferences and participation mean the headline price isn’t what common holders receive. Fintra models the waterfall on your cap table for any exit value.
What exit waterfall modeling does
Fintra models how exit proceeds flow through the preference stack: liquidation preferences, participation rights, and the preferred-vs-convert decision, down to what common shareholders and option holders actually receive. Run it at any exit price to see each stakeholder’s real payout - including whether an employee’s options are worth exercising.
- Proceeds modeled through the full preference stack
- Liquidation preferences and participation handled
- Preferred conversion decision at each price
- Per-stakeholder payout, incl. option holders
The waterfall, step by step
How proceeds flow
- 1
Preferences first
Preferred holders take their liquidation preferences off the top.
- 2
Participation
Participating preferred also shares in the remainder.
- 3
Convert check
Preferred converts to common when that yields more.
- 4
Common & options
The rest flows to common and in-the-money options.
What it means for employees
On your real cap table
- Uses the actual preference terms on the cap table
- Pairs with dilution modeling for the full picture
- Feeds employee what-if-exit and total comp views
Frequently asked questions
What is an exit waterfall?
It’s the order in which exit proceeds are distributed - liquidation preferences to preferred holders first, then participation, then common and option holders. Because of preferences, common holders can receive far less than the headline price implies, which the waterfall makes explicit.
Why do liquidation preferences matter so much?
Preferred investors typically get their money back (sometimes a multiple, sometimes with participation) before common holders see anything. At lower exit values that can leave little for founders, employees, and options - so the preference stack, not the price, determines real payouts.
Can employees see what their options are worth at exit?
Yes - the waterfall computes per-stakeholder payouts including option holders, and Fintra offers an employee what-if-exit view, so someone can see whether their options clear their strike at a given exit price before deciding to exercise.
Does it use my actual terms?
Yes. The model runs on the real preference terms recorded on your cap table - preference multiples, participation, and conversion - so the payouts reflect your actual deal, not a generic assumption.
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