欢迎来到天天文库
浏览记录
ID:11118495
大小:3.97 MB
页数:61页
时间:2018-07-10
《venture capital and private equity contracting chapter11》由会员上传分享,免费在线阅读,更多相关内容在教育资源-天天文库。
1、SecurityDesignCumming&Johan(2009,Chapter11)FormsofFinanceReviewofDifferentSecurityPropertiesTheConventionalWisdomDataExplanationsfortheDataSummaryDebt1stpriorityinbankruptcyStipulatedinterestpaymentsNon-paymentofinterestcanforcebankruptcyPreferredEquity2ndpriorityinbankruptcy
2、StipulatedpreferreddividendpaymentsNon-paymentofdividendscannotforcebankruptcyFormsofFinance(Con’t)CommonEquityLastpriorityinbankruptcyDividendsmayormaynotbeforthcomingResidualclaimantsupsidepotentialcapitalgains!WarrantsOptiontopurchasecommonequityLikeanAmericancalloptiont
3、opurchasethefirm(butdifferentbecauseincreases#securitieswhenexercised)ReviewofDifferentSecurityPropertiesTheConventionalWisdomDataExplanationsfortheDataSummaryFormsofFinance(Con’t)ConvertibledebtDebt+optiontoconvertfromdebttocommonequitySimilartodebt+warrantsConvertiblepreferr
4、edequityPreferredequity+optiontoconvertfrompreferredequitytocommonequitySimilartopreferredequity+warrantsReviewofDifferentSecurityPropertiesTheConventionalWisdomDataExplanationsfortheDataSummary5Figure2.1.PayoffFunctions$ValueofEntrepreneurialFirmPayofftoCommonEquityPayofftoDe
5、btPayofftoPreferredEquity45o45o45oPresentValueofInterest+PrincipalonDebtPresentValueofPre-SpecifiedPreferredDividendsSlopeis45ofor100%ofthecommonshares(45o*X/100forX%ofthecommonshares)TheConventionalWisdom“Convertiblepreferredequityisoptimal”Nothreatofbankruptcyforentrepreneur
6、ialfirm(contrasttodebt&interestpayments)PriorityfortheVCintheeventofbankruptcyUpsidepotentialfortheVCEntrepreneurwouldnotagreeunlesstrulycommittedtotheventure–mitigatesadverseselectionproblemsProvidesincentivesfortheVCtohelpthefirminbadtimes(VCaresidualclaimantinbankruptcy)Pri
7、cingofsecuritiesisrobusttoerrorsinfirmvaluationReviewofDifferentSecurityPropertiesTheConventionalWisdomDataExplanationsfortheDataSummaryTheConventionalWisdom(Con’t)“Convertiblepreferredequityisoptimal”Mitigates‘window-dressing’problemsinstagedfinancingarrangementsMitigates‘ris
8、k-shifting’problemsTermsofthecontractcanbeflexibleIncentivesf
此文档下载收益归作者所有