[Dwolb]

Sure but those preferences only really affect equity payouts when the company’s in distress.

When selling the a non-distressed company, equity will receive cash.

[JumpCrisscross]

> those preferences only really affect equity payouts when the company’s in distress

Liquidation preferences and bankruptcy priority only matter when a company is distressed.

[Dwolb]

Is it not possible to sell a company that is currently profitable, cash flow positive, and is worth less than what investors had put in?