How can it be $300 mn without liquidation preference?



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Assume an investor who invested $100 million holds 15% in your company and has a 2x liquidation preference. If you sell your company for $2 billion how much will this investor get without the liquidation preference?
how can it be $300 mn?
pls explain the calculation.

1 Answer(s)


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let me explain - without Liquidation preference 2x doesn't have any significance. So only 15% of 2 billion has to be calculated which equals to 300$ million.