Proposed Payback Schedule
Our company will follow a simple "waterfall distribution" model: all of our profits will go to our investing partners until they have recouped their initial investment. After that, profits will be distributed based on relative percentage ownership in the company (our investing partners will have 40% ownership).
The model below is based on our projected profit and loss for years 1–10, and shows:
- our investors receiving 100% of their investment in the middle of year 4
- an internal rate of return over 10 years of 19%