Already an Angel? Become a VC in two working sessions, and we may invest in your fund. Seats close Sept 15.
Save My Free Seat
Cohort 22 launches September 10. Bring a founder, an angel, or an LP who belongs in the room. The VIP Launch Mixer is free and online.
Reserve a Spot
0

What Are the Best Practices for Accounting Acquired Portfolio Companies via Share Swaps in Your Track Record?

What are the best practices to account for portfolio companies that are acquired through share swaps in your track record?
1 See in Base
1
Compare the price per share between your purchase price and the current price when acquired, and then record this differential as a markup. This assumes that you will have the same number of shares. If the share counts differ, then just calculate the value of the ownership position before and after using the price that you paid as the value at the start. Technically, since it is an all stock acquisition, you have not exited, so I would not characterize this as an exit.

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now