Setting up liquidation preferences

Create the liquidation preferences for an investment round in Diligent Equity.

1. Go to the Securities section in the navigation sidebar and select Shares.

   You will see the details of the company's previous securities issuances.

2. Select the Preferred Round and select Settings on the toolbar.

   The Settings window opens.

3. Select the Liquidation tab.

   

4. Select On to enable this feature.

5. Complete the following fields.

   1. Preference amount: (#) X - This field defaults to 1 X, but it may be overwritten with a different multiple.

   2. Dividend: (%) (Yearly) - If the liquidation preference includes an interest or dividend accrual, enter the percentage here. Accrued dividend is the default, but if dividend is accrued only if when declared enter in the Date Range.

   3. Participating Preferred: Select this option if it is participating preferred stock.

   4. Select Only when proceeds do not exceed if there is a cap on participation, and enter the multiple that applies.

   5. Non-Participating Preferred: Select if it is non-participating preferred stock.

   6. Carve out minimum proceeds of: If there is carve out mechanism insert the minimum proceeds in %.

   7. Comments: Record any additional notes.

   Select Close to save an changes made to the Round Settings.