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I need help with a financial model I created for a start-up. By way
of background the model is a five year month by month income statement, BS and statement of cash flow that is fed by four or five assumptions pagers. The model feeds into an executive dashboard. The dashboard is a summary of information and includes a table for calculating the IRR. I am able to formulate the dashboard to calculate the IRR however I am stumped to allow it to calculate the waterfall so that when I increase revenue assumptions it feeds the waterfall breakdown. I want the model to be able to calculate dollar returns to the three Series (A,B, and C) when the profitability of the model is increased. The waterfall is as follows: (i) payoff of any debt (ii) 100% to the Investors (series A) until they have received a return of contributed capital, then additional distributions of (iii) 70% to Series A until the Series A investors an IRR of 30% and then 30% prorated to Series B and C, then additional distributions of (iv) 60% to Series A until the Series A investors receive an IRR of 35% and then 40% prorated to Series B and C, then additional distributions of (v) 33% to each class thereafter. |
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