Use this spreadsheet to determine how many shares the company should buy-back from participants so the new split aligns with the Slicing Pie allocation. Buying back shares, rather than issuing new shares, could help avoid unnecessary taxes. Talk to a Slicing Pie Lawyer about what’s best for you!
NOTE: This process can also be used to determine vested shares when using a Slicing Pie Vesting Agreement. In the vesting scenario you would issue a fixed number of restricted shares subject to Slicing Pie vesting. When you “bake” the Pie at breakeven or Series A, participants will vest according to Slicing Pie. In the video I refer to a “buy down”, but you can think of these as shares that do not vest. Don’t forget to file an 83(b) with the IRS!
Click Here to Download the Spreadsheet