Base case

A Base Case is the number of years agreed between an enterprise and it’s fiduciary financiers for modeling cash flows that are expected to be sufficient to meet the fiduciary burden imposed on the money being invested in the enterprise. During the Base Case sharing percentages start high in favor of the financiers, and decline over time as pre-agreed break points are passed. This is the equity payback period.  It can also be thought of as an Ownership Earnback,  Beyond the Base Case, sharing is ratable indefinitely.