Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by robocat on Wednesday August 29, 2018 @05:12PM
(#17872098)
After the share buyback, has he undiluted his ownership from 45% to above 50%?
[ Parent
| on HN ]
Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by btilly on Wednesday August 29, 2018 @06:41PM
(#17872714)
Not by my calculation.
Here is how I figured that. He had 45% of a company that was valued at $80 million in the buyback. That's $36 million. He paid back $3.3 million. That reduces the value of the company by $3.3 million and leaves his value untouched. So he now has 36/(80-3.3) = 0.46936... of the company, for around 47% < 50%.