Driving Business Advantage

FOLEY HOAG LLP Liquidation Preference Driving Business Advantage ▪ Sometimes “multiples” are used (1x, 2x, 3x the investment amount) ■ Sometimes accruing dividends are included (essentially like adding an interest rate component to the preference-range of 4% to 9% in Q3). ■"Preference overhang" refers to the total amount of liquidation proceeds that go to the holders of preferred stock before the holders of the common stock begin to share in the liquidation proceeds. © 2014 Foley Hoag LLP. All Rights Reserved. 24

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