Who gets paid first in a deal? 👀 #exitstrategy #makeandsell #learnbusiness #privateequity #money

Hi there! I'm here at the farm to talk about something every founder should know: the capital stack. Think of it as a hierarchy of who gets paid first and who takes the most risk when a business is funded or sold. At the bottom is senior debt, like a bank loan. It's the safest position because they're the first in line to be repaid. Next up is mezzanine debt. It sits in the middle, riskier than bank loans but safer than equity. It's often used to bridge the gap in your funding. At the top is common equity. That's you, the founder. It's the riskiest spot, but it has the highest potential reward. Then we have preferred equity. These investors get paid before you, the founder, but they don't have the same upside as the common stock. At Prime Exits, we help you engineer this stack to protect your legacy and maximize your company's value. Ready to optimize your exit? DM our team or visit pexitz.com. Follow us for more tips. We look forward to hearing from you.