Introduction

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 can work 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.

Getting Started

To begin, open the Exit Scenario Planner from the Company Workspace, located in the Equity & Financing tile.

As you can see in the screenshot below, you can 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. Based on the exit value and date you enter, the planner will create the waterfall analysis and calculate the payout distribution by stock class and financing type.

Sections of the Exist Scenario Planner

Now, let's discuss each section of the Exit Scenario Planner in depth:

Stock Classes
Investors & Key Holders
Debt & Alternatives
Non-Convertible Debt

Stock Classes

There are many areas in this section that you can edit and/or customize:

Click the 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.
Click Add Stock Class and enter 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.
To change the order of the stock classes, click Modify Liquidation Stack and then drag and drop each stock class as needed.
Click on Settings to change additional settings such as the Pro-rata Settings, Pricing Methodology, Investors and Key Holders, Shadow Classes for SAFEs, and the Stock Plan Usage at Exit.

Investors & Key Holders

This section will show you the current investors and key holders based on existing data from the capitalization table. Click Add Investor to add new investors to this list. Use the edit button to record new investments or pro-rata investments, if applicable.

Debt & Alternatives

Any debt or alternatives you've already recorded in the platform will appear here automatically. You can also add debt instruments anticipated before your exit by clicking Add Convertible. Check the box if the notes will convert in the next financing. Click on the Edit icon to set details like the valuation cap, discount percentage, and interest rate to be used in the waterfall analysis.

Non-Convertible Debt

Capture or edit any estimated non-convertible debt in this section. This includes things like bank debt, bank fees, legal fees, and other fees.

Best Practices

We suggest you jump in there and play around so you can get comfortable using the Exit Scenario Planner. As shown above, you can reset the report options and you can also export the report when you're done.

Screenshots are for Illustrative Purposes Only.

Fidelity provides cap table management and other administrative services to private companies and their equity compensation plans.

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