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SAR Calculator

The document illustrates how to calculate the value of Stock Appreciation Rights (SARs) in different scenarios. It shows the SAR and equity share value at issuance, the SAR to equity share ratio, and discount percentage. It also provides examples calculating SAR value for situations like founder redemption, acquisition triggers with or without increases in fair market value, and with valuation caps and varying company valuations. The document is a guide for computing SAR values under different conditions typically found in founder equity agreements.

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Praveen Prasad
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96 views

SAR Calculator

The document illustrates how to calculate the value of Stock Appreciation Rights (SARs) in different scenarios. It shows the SAR and equity share value at issuance, the SAR to equity share ratio, and discount percentage. It also provides examples calculating SAR value for situations like founder redemption, acquisition triggers with or without increases in fair market value, and with valuation caps and varying company valuations. The document is a guide for computing SAR values under different conditions typically found in founder equity agreements.

Uploaded by

Praveen Prasad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Tyke Technologies Private Limited Indicates a field requiring input

SAR Calculator

Illustration of calculation of value of SAR


i) No increase in the Fair Market Value of Equity Share (Call-option is exercised by founder for redemption)
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

ii) With increase in the Fair Market Value of Equity Share (Call-option is exercised by founder for redemption)
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

iii) No increase in the Fair Market Value of Equity Share (Call-option is exercised by founder for redemption) with longer dura
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

iv) Trigger event (e.g. acquisition) for involuntary exit with no increase in FMV
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

v) Trigger event (e.g. acquisition) for involuntary exit with increase in FMV

Value per SAR Value per Equity Share Ratio of SAR to Equity Share Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%
or redemption)
Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 25,000,000

r for redemption)
Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 60,000,000
10,000
for redemption) with longer duration 10,000
Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 25,000,000

Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 25,000,000

Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 45,000,000
Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback or conversion
18 2.5 3 2,500

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
18 2.5 6 3,000

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
48 4 3 4,000

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
18 2.5 2 1,250

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
18 2.5 2 2,250
Increase in value of SAR Increase in value of SAR
in INR %
1,500 150%

Increase in value of SAR Increase in value of SAR


in INR %
2,000 200%

Increase in value of SAR Increase in value of SAR


in INR %
3,000 300%

Increase in value of SAR Increase in value of SAR


in INR %
250 25%

Increase in value of SAR Increase in value of SAR


in INR %
1,250 125%
Tyke Technologies Private Limited Indicates a field requiring input
SAR Calculator

Illustration of calculation of value of SAR


i) No increase in the Fair Market Value of Equity Share (Call-option is exercised by founder for redemption)
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

ii) With increase in the Fair Market Value of Equity Share (Call-option is exercised by founder for redemption)
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

iii) No increase in the Fair Market Value of Equity Share (Call-option is exercised by founder for redemption) with longer dura
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

iv) Trigger event (e.g. acquisition) for involuntary exit with no increase in FMV
Value per SAR Value per Equity Share Ratio SAR to Equity Shares Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%

v) Trigger event (e.g. acquisition) for involuntary exit with increase in FMV

Value per SAR Value per Equity Share Ratio of SAR to Equity Share Discount %
At issuance At issuance Discount to SAR grantees
1,000 2,000 1:1 20%
or redemption)
Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 25,000,000

r for redemption)
Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 60,000,000
10,000
for redemption) with longer duration 10,000
Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 25,000,000

Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 25,000,000

Valuation Cap (in INR) Shares outstanding (at issuance) Valuation of company (INR)
Defined at issuance On date of conversion/buyback
25,000,000 10,000 45,000,000
Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback or conversion
18 2.5 3 2,500

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
18 2.5 6 3,000

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
48 4 3 4,000

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
18 2.5 2 1,250

Duration since issuance Call option multiple Ratio of Equity Shares to SAR Value per CSOP
In Months As per agreement On buyback or conversion On buyback/conversion
18 2.5 2 2,250
Increase in value of SAR Increase in value of SAR
in INR %
1,500 150%

Increase in value of SAR Increase in value of SAR


in INR %
2,000 200%

Increase in value of SAR Increase in value of SAR


in INR %
3,000 300%

Increase in value of SAR Increase in value of SAR


in INR %
250 25%

Increase in value of SAR Increase in value of SAR


in INR %
1,250 125%

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