preparing for an ipo - shareworks

Preparing for an IPO: Equity Compensation q y pMilestonesJuly 2, 2014

1

2

The Shareworks PlatformThe Shareworks Platform

3

Our expertsOur experts

Jeremy WrightJeremy WrightSVP, Product

Matt LeeDirector, Scenarios

Erin BarberImplementations SpecialistImplementations Specialist

4

For discussionFor discussion

• IPO milestonesIPO milestones• The Shareworks platform• How Shareworks can help• How Shareworks can help

• Cap TableS i• Scenarios

• Expense Accounting & Plan Admin• Participant Experience

• The IPO and Beyond

5

IPO MilestonesIPO Milestones

Pre‐IPO

M&A Ready

Things are getting more seriousReassess award process

Expense Accounting

Pre IPO

R701 Analysis$100K limit checks

ReadyExpense AccountingSell vs go public? (Scenarios)

Startup

2 l i f

Growth Stage

2 people in a garage form a companyCreate a ‘cap table’Start new comedy show on HBO

Large cash inflows (Scenarios)Start hiring processAttract and retain talentGrant options and RSUs

6

Grant options and RSUs

The Shareworks PlatformThe Shareworks Platform

7

Cap TableCap Table

• Milestone – Incorporationp• Challenges

• Keeping a single, accurate record of ownership registerregister

• Sharing with stakeholders inside and outside the company

• Having confidence in your reports

How does Shareworks Cap Table help?p

8

ScenariosScenarios

• Milestone - 1st round financingMilestone 1 round financing• Challenges

• How security types impact payouts• How security types impact payouts• Merger vs. IPO: what’s the impact?

M d li i l b h ll i• Modeling in excel can be challenging

H d Sh kHow does ShareworksScenarios help?

9

Plan Admin & Expense AccountingPlan Admin & Expense Accounting

• Milestone - granting of optionsg g p• Challenges

• Details to track on various participantsp p• Award information also has complex details• Once public, this data being inaccurate has

REAL financial consequences

How does ShareworksPlan Admin help?

10

Plan Admin & Expense AccountingPlan Admin & Expense Accounting

• Milestone – expense reporting p p g• Challenges

• Financial reporting is difficult for ANY p gcompany

• Dealing with more frequent disclosure h d l d d d ft IPOschedules and demands after IPO

• Much greater auditor scrutiny

How does ShareworksE A ti h l ?Expense Accounting help?

11

Participant ExperienceParticipant Experience

• Milestone – Employee Hiring and Retention• Challenges

• Clear, consolidated picture of ownership and t t di doutstanding awards

• 24/7 access to real-time information• Online transaction and trades post IPOOnline transaction and trades post IPO

How does ShareworksHow does ShareworksParticipant Experience help?

12

The IPO and BeyondThe IPO and Beyond

Considerations beyond the IPO?Considerations beyond the IPO?• Section 16 Forms Filing• HRIS feeds (like Workday)• HRIS feeds (like Workday)• Regulatory and tax• Tax mobility

“The road to profitability will be difficult without strong fundamentals”

13

Questions & Next StepsQuestions & Next Steps

Jeremy Wright Erin BarberSVP, Product Implementations Specialistjeremy.wright@solium.com erin.barber@solium.com

Matt Lee To request a product tour:Director, Scenarios solutions@solium.com

l @ li limatt.lee@solium.com www.solium.com

Thank you for your time!

14