A Cap Table spreadsheet is an Excel template that shows the dividends made by each partner of a company as a share of stock. In business terms, this means that the shareholders of a company make money from the corporation’s profits. There are certain requirements needed to be able to create these in Excel. It must show the shareholders and how they are being benefited from the company.

The cap table spreadsheet is useful for the founders and the directors as well. The information on the shareholders can be used in forecasting the future dividends paid by the company. For example, if there are many new shares being issued in a business that has many patents, the value of the stock will surely go up. The shareholders will receive less when the price of the company’s stock goes up. If the business is already very established and the founder makes a lot of profit, the value of the shares may also go up.

The cap table spreadsheet can also be used to calculate the exit price of the business. This is done by dividing the net worth of the company by its current market value. This will then give the shareholders an idea on how much they will receive after selling off all their shares. When calculating the exit price, it is also important to add up the net cash flow.

The cap table spreadsheet is also useful when computing for the Net Cash Flows. This is computed by adding up the net income from the capital contributions, the stock incentive payouts, and the dividend payments. This gives a good idea on how the business would fare in the long run after giving the incentives to the employees. The most common calculation for the net flows is the net income post-money cap table.

Dividing the Net Income from Capital contribute by Number of Shares: This feature is very useful. It gives the investors an idea if they are paying too much dilution. To do this, divide the Net Income by the number of outstanding shares. This allows investors to see whether the cap tables are actually justified.

View Ownership percentages by Type of Ownership: This works similarly to the cap table. This allows the owners to see the percentages of ownership by type of ownership such as minority interest and choice stocks. Furthermore, it calculates the exact value of the ownership stake by giving the inventor or co-owner the actual sales price as well as any stock incentive plan.

The Cap Table Sheets can also be customized to include more columns and data. There are two options for customization; either the shareholders’ name or data. A spreadsheet template may also include the name of the company, its headquarters and states where the company is based. For instance, if you choose to use the Excel template, it comes with a ” Wyoming Business Basics” tab that allows the company or its capital structure to be viewed.

In a startup that intends to sell its business in a few years, it is very necessary to create a cap table so that the investors know how soon the company can realize its expected profits. It is important to view this type of financial information because the company’s potential market size and future growth can be determined with the help of this financial format. Moreover, the spreadsheet allows potential investors to determine the amount of capitalization that can be realized using the company’s shares. For startup founders who intend to sell their shares in a year or two, they can easily calculate the share sale price using the cap table.