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Investors are happy with a 10% discount from preferred when buying common shares with no liquidation preferences?
by greglindahl 9y ago
Investors are happy with a 10% discount from preferred when buying common shares with no liquidation preferences?
- stale2002 9y agoNot every company has onerous terms. But you could still factor that in to whatever the fair market value is. Call it a 50% discount if you like, to get to the "market value". But that still sounds like a much much better deal than what the CEO is offering
- greglindahl 9y agoEven a 1X liquidation preference knocks a lot off, and that's hardly onerous. There's a reason why the 409a value is often only 10%.