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A pro forma balance sheet is basically a spreadsheet which displays the financial information of an organization as of a certain date and for a potential future investment. The spreadsheet displays the equity, retained earnings, free cash flow, assets, liabilities, and the annualized performance measurement called EPS (earnings per share). The spreadsheet also includes information about the ownership structure of the organization. The spreadsheet compares the current value of the stock with the fair value in the current market.In order to understand what a pro forma cap sheet does, it is important to know what a typical cap table is not. Typically, a cap table or model is created during the earlier stages of funding for a private placement. This allows the underwriter to calculate the likely investment size, as well as the potential return on investment by taking into consideration the investors' preferences, objectives, risk tolerance, and trading preferences. However, most private placements do not use a standard cap table because investors will vary tremendously on what they are looking for in a small cap company. Private placements often require the involvement of many professionals from different areas of industry who all have different needs regarding how to best represent their organization to their preferred financial managers.Many companies create pro forma cap tables as a means of providing management with a way to represent their holdings. Often, this is done by determining if the company is valued correctly by investors. Investors will use one or more of several techniques to determine value. One popular method of valuation is to use the P/E ratio, book value, or net worth. Using one or more of these techniques will not guarantee success with investors, but they can greatly help investors in determining what their preferred investment might be.Cap Tables are based on certain criteria that an investor must use in order to provide enough information to investors for them to make an informed decision on what is a good buy or sell. These criteria will often differ depending on the specific business or entity being evaluated. One reason that these tables may vary is based on the type of ownership. Some types of ownership are easier to quantify than others, so it is important for an auditor to use the appropriate type of cap table for each entity being considered for a pro forma cap table. Investors who are making investment decisions will also want to consider whether or not they have enough capital to support any potential purchase of the corporation.One of the main reasons that a cap table may be used in what is a pro forma cap table is to provide an estimate on the value of shares. The easiest way to determine the value of a share is based on the current price per share. Investors will use a historical data point to compare the price per share that they would like to own with the current price per share. Determining Two12 of the shares is important because this cost will be used when computing the shareholders equity or capital gains tax.Investors will also need to consider if they can create a pro forma cap table on their own and if they can find a reliable source for the information. In most cases, this will involve engaging in research and a great deal of work. There are many resources online that investors can use to gather information on what is a pro forma cap table. However, finding one that will provide accurate information at a reasonable cost can be difficult. In many cases, investors will not be able to create their own cap table if they lack the experience required. This means that they may want to hire a broker or a financial advisor to help create a cap table for them.Investors who have decided to use an EQVenture to create a cap table will have the ability to choose how much money they want to invest. Investors who have unlimited funds will have the ability to increase their investments by 100% if they choose. This can create a greater return for investors and can increase the profitability of investment when used by professional traders. Investors can even choose what type of stock they wish to invest in through the platform. They can invest in the stock market, bonds, commodities, and any other market that they want to.An important consideration when using an EQVenture to create a cap table is the exit plan. An exit plan will allow investors to determine when they will sell their shares. If the investor uses the standard asset allocation model then the investor will not have any cash flows associated with their investments. To create a pro forma cap table, an investor will want to use an exit plan that provides cash for trading purposes.