Equitysplit Prep

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ROHAN SHAH

FT151052

EQUITY SPLIT
a. What is key to get the best in this NAB?
-

The objective of the deal was to identify the best value for all the members that were
involved in the negotiation.
There should not be any deal breaker situation.
I also wanted to increase my salary however I wanted to give preference on salary and
wanted to keep my equity in the firm constant.
I was also focused to increase my seed equity which would increase my share in the
company.

b. Calculations based on the tables given?

Heading

Phuc

Final Decided value

Founders Equity

-20

25%

Phuc Salary

90

110000

Seed Equity

-20

25%

Warren

1%

Points earned

50

NA

Target points

40

NA

c. Other key points from your case analysis


-

When I should get an increment in the salary as I had 200000$ salary from consulting work
and now company is offering only 40000$.
Maintaining long term relation with the company is beneficial.
I believe that Michel should get more equity share as he has put the maximum effort in the
growth of the company, I was ready to reduce my equity share by 1%.

d. Your game plan for the NAB:


-

Georg should not get any additional equity share.


Increment in salary would make me earn 90 points which will help to avoid the deal
breaker.
Understanding the RV of Michel and Georg, I had agreed on 25% in seed equity share which
would make me suffer a loss of total -20 points.
I didnt have any issue with Warrens share and hence after taking Georgs sentiments into
consideration, I decided to keep Warrens share as it was.

ROHAN SHAH FT151052

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