How IMPACT allows you to structure your financial waterfall deal

IMPACT is based on the multi-industry-standard philosophy of incentive-based financial deal structuring referred to as a "Waterfall."

Participant/partnership waterfall calculations, especially for incentive-based deals, have in the past been constrained, not by what the parties want to structure, but by technology limitations.

Using this innovative software in creating waterfall financial deal strategies, you have:

• Any number of participants;
• Multiple layers of debt and/or equity;
• Tracking of multiple participant contributions by date;
• Accurate calculation of daily/monthly accruals on debt and equity;
• Flexibility in establishing priorities of cash flow distribution allocations;
• Calculation of multi-tiered profits allocations, (after debt and equity have been fully repaid);
• Determination of the Internal Rate of Return for each participant based on virtually any financial deal structure;
• The automated management of a configurable Reserve Account;
• The automated calculation of Capital Call amounts based on configurable rules;
• Calculation of Net Sale Proceeds of the investment based on various assumptions (e.g., capitalization rates, fixed and variable sales expenses, etc.);

An accurate & flexible alternative to spreadsheets
Intuitive & Easy-to-Use
"What-if" Scenario Builder / Sensitivity Analysis

An accurate & flexible alternative to spreadsheets

If you’ve ever tried to structure an incentive-based deal between multiple investment participants, you’re likely to have been using complicated spreadsheets that can be time-consuming and error-prone.

Other software alternatives haven’t been flexible enough, but by using IMPACT in your partnership waterfall calculation, you will benefit from software that is easy-to-use, completely accurate and lets you input all the variables you need.

Intuitive & Easy-to-Use

With our simple and intuitive control panel you’ll find our software easy to use. Not only is it much faster than a spreadsheet, it is also more flexible, considerably less cumbersome, less frustrating and removes the concern and liabilities of spreadsheet errors.

The software requires very little training allowing people for whom complex spreadsheet calculations are out of their scope to be able model complicated waterfalls.

"What-if" Scenario Builder / Sensitivity Analysis

When working out Waterfall financial deal structures, most programs make it nearly impossible to quickly put build complex scenarios, limiting your ability to find the best deal.

You can construct virtually any incentive-based financial waterfall scenario, with accurate and detailed results in minutes, rather than the days they might take if done on a spreadsheet.

Model a complex waterfall in days

• Deal Strategy
• Deal Modeling
• Deal Management

Deal Strategy

The concept of an optimum cash flow waterfall relationship between all parties — the developer/owner/sponsor/operator and capital source(s).

With IMPACT your incentive-based financial strategies can be structured flexibly and easily.
Your cash flow waterfall strategies can now allow for:

• Varied participant contribution dates and amounts;
• Ease of profits allocated, after debt and capital have been fully repaid;
• Determine the Internal Rate of Return for each participant based on virtually any deal structure;
• Establishment of priority rules for distribution of cash flow to participants;
• The cash level management of a configurable Reserve Account;
• Calculation of Net Sale Proceeds of the investment based on various assumptions (e.g., capitalization rates, fixed and variable sales expenses, etc.)

Deal Modeling

Deal modeling has in the past been constrained, not by what the parties want to structure, but by technology limitations. Optimum deal structure (which is the heart and soul of most investments) has now been solved with our powerful tool.

With IMPACT the user can model deals with any number of:

• Participants
• Layers of debt and/or equity
• Distribution priorities of cash flow
• Incentive-based profit percentage tiers
• The Internal Rate of Return (IRR) for each participant is quickly and accurately available, thus providing a comprehensive performance management view.
• Deal modeling (i.e., “what-if scenarios•) is fast, efficient and accurate with IMPACT.

Deal Management

Ongoing management of incentive-based deal structures is easy to do with IMPACT.
Periodically, throughout the term of a deal, participants may wish to see a new performance management as a result of revised projected income and/or disposition proceeds. IMPACT does this accurately and automatically.

Typically, throughout the term of a deal’s management, there are daily and/or monthly accruals that must be calculated on each investor’s contributions into one or more levels of debt and/or equity. IMPACT does this accurately and automatically.

Cash flow waterfall financial distributions from an investment must be allocated between participants based on complex distributions priorities. IMPACT does this accurately and automatically.

At the time of disposition, profits need to be distributed according to complex profit participation tiers. Again, IMPACT does this accurately and automatically.