With the introduction of the waterfall analysis on Eqvista, we have created a simple guide to how you the functions of this financial modeling on the platform.

Note: The waterfall analysis feature is only available for premium account holders. Kindly upgrade your account to unlock this feature. 

Here is a step-by-step guide on using waterfall analysis on Eqvista.

Step 1: Log into your account on Eqvista and select your company’s profile. 

Eqvista login

On the dashboard, click on “Waterfall analysis” on the left-hand side under “Modeling”.


Step 2: After you have entered the “Waterfall Analysis”, the following display will appear. The interface was made to be user-friendly and compact to allow users to easily input data and understand the results created.

waterfall analysis
  • As you will see, the top line has boxes to input the data of your exit scenario. Below this displays the key figures about this particular exit. 
  • The final results after the calculations, are nicely displayed in a pie graph for each share class.
  • There is also a table with the results for each share class underneath this. The table is divided by each share classtheir total investments in the cap table, and the total payout for each. You can use this data to view the total payout each equity class receives from the exit of the company. 

Step 3: Each value of the waterfall analysis has been custom-made to assist with the exit scenarios of the company. Therefore, there are 5 input boxes to enter in data pertaining to your exit value.

exit scenarios of the company

The top line with five inputs in the modeling are:

  • Exit Value: The value the company can be sold.
  • Exit Date: Date of the company exit. This date may affect any dividends or convertible note interest.
  • Uncovered Debt: Uncovered debt of the company not existing in the cap table.
  • Transaction Fees: Any transaction fees of the exit. These could be professional fees during the company’s exit.
  • Remaining Exit: Remaining value for the shareholders

Below are four key figures to track in the waterfall analysis process:

Key figures to track
  • Converted Liabilities: The total converted liabilities value in the company. There is an option to “include” this amount as taken before the other payouts to shareholders. 

Note: When you are performing waterfall calculations, especially for convertible notes be sure to unclick the “converted liabilities” to $0. This means that you wish to take $0 of the converted liabilities before the common round when all forms of securities are converted to common shares. If you have it as “include”, then only the total principal + interest of the converted notes will be taken.

  • Preference Liquidation: The total payout value of the preference shareholders in the preference round. This would occur if the preferred shareholders choose to liquidate their shares before the other shareholders. The payout order starts at seniority 1 and ends with seniority 10.
  • Common Participation: The total payout leftover for the common shareholders of the company.
  • Common Share Price: The share price per common share. This value will be 0 if there is no payout to the common shareholders.

Step 4: The “Overview” table, has been split into two main parts.

  • On the left hand, these columns will resemble closely the company’s cap table. These figures are useful when comparing them to the final payouts from the waterfall analysis.
  • On the right side of the table are the payouts per share class. The “Pref Proceeds” represents the proceeds from liquidating the preference shares. The “Total Proceeds” shows the total proceeds per share class. The “Percentage %” shows each percent of the company’s payout.

This table and the waterfall analysis will help you better calculate the exit rounds of your company. It will be especially helpful if you have a complex cap table or many different rounds of investments in your company.

Step 5: To download the analysis, you would have to click on “Download As PDF” at the top right of the page. 

download analysis

Step 6: By clicking on this, your download will begin and the analysis will be saved in the form of a PDF in your system. In this case, the analysis has been saved in the Downloads.

PDF File

Double-click the PDF file to open the analysis.

open the analysis

If you have any doubts or want to know more, check out the other support articles here or contact us!

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