Reference no: EM133653520

Question: The case is based on a real life investment in a supermarket start-up in Argentina by Bank of America Equity Partners -Latin America and Nexus Partners (Private Equity firms operating in the US and Emerging Markets). Nexus Partners is evaluating an investment in Eki. Eki is basically a start-up in the supermarket retail industry, with 7 stores operating under the soft discount format in Argentina, facing attractive growth opportunities but limited access to funds to capitalize on those opportunities. Here is the case: Investing in Eki Discount (A) Here is the Excel file you will need: Spreadsheet Supplement Imagine you are part of the Nexus team. You should answer these questions: Should Nexus Partners invest in Eki? If yes, how much capital should you contribute and what should the valuation be? What are the risks that should be taken into consideration and how can you reduce potential risk for the investors through deal structuring? What would be the key due diligence considerations? Prepare a 2-3 pages Investment Memo Summary, answering the above questions together with a valuation -including DCF-, a LOI (Letter of Intent) with the main terms for a proposed deal and key due diligence issues you will look