Topic Office of CFO

For companies that use debt, this type of rollfoward can be helpful when discussing debt with investors. Feel free to adjust it to match your debt structure. Knowing what drove significant increases and decreases is key.

One thing to consider, particularly if you are a newer and smaller cap company, is to have a detailed schedule that shows the current equity capitalization of the company. This comes in handy when discussing dilution to existing shareholders. Plus, it is easy to track for most companies.

Any material transaction you do will require some level of due diligence. Rather than wait until an investment banker provides a list, have these items always available. Not only is it good corporate practice to have all of these items well organized, but your credibility will skyrocket with all stakeholders when all of your diligence items are quickly available. This gets your deal done quicker!

As part of your detailed Equity Capitalization schedule, having a detailed rollforward of your equity incentive (options, restricted stock, etc.) will be helpful. Use this example to reflect your activity, which can then be used in your Equity Capitalization schedule.

Companies have a tremendous number of options to get capital for expansion and operations. Your investor community certainly has opinions on whether you issue equity or use operating cash flow. This tool will help you identify all considerations when communicating your capital raising efforts.

In most organizations, IR is a CFO responsibility. It is one of many different hats the CFO wears. Here is a matrix which shows the responsibilities for most public CFO’s.