Pre and post transactions valuations, Business Economics

Assignment Help:

Talltree is considering a $12m series B investment in Newco for CP with $12m FV or converting to 5m shares of common. The other investors are the founders, who have 10m shares of common, and the Series A investors, EBV, who have CP with $6m FV that can convert to 5m shares of common. In both of these structures, the Series B has a liquidation preference to the Series A. Both Talltree and EBV receive carried interest of 20% and charge management fees of 2 percent per year for all ten years. All the parties agree on an estimate of $30m for the total valuation of Newco, and the expected holding period is four years.

a)  After this round with Talltree, what are the pre- and post-money valuations for Newco?

b)  What are the pre- and post-transactions valuations?

c)  After this round by Talltree, what is the LP transaction valuation for the Series A investment made by EBV?


Related Discussions:- Pre and post transactions valuations

Greatest minimum efficient scale, The values for the long-run ATC curves of...

The values for the long-run ATC curves of three different firms are listed in the table below: Quantity ATC 1 ATC 2 ATC 3

Define methods used to monitor supplier performance, Define methods which c...

Define methods which can be used to monitor supplier performance. Methods to monitor supplier performance are as follows: a. Approval of designs: The organisation comments o

Case Study, Harvard Business Review Case Study 9-572-029 Fisher Price Toys....

Harvard Business Review Case Study 9-572-029 Fisher Price Toys... Need help with the following questions: 1. Should Fisher Toys lauch the ATV Explorer? 2. What price tag should the

Growth stock and p/e ratio , Part 1 : Show the P/E ratio for each company. ...

Part 1 : Show the P/E ratio for each company. Answer the question: Which of these two firms seems to be more of a "growth stock"? Explain the reasons for your choice. Part 2:

Economics, Why does a production possibilities frontier with increasing opp...

Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?

How a budget deficit of the government can cause inflation, QUESTION (a...

QUESTION (a) Use graphical methods to distinguish between cost push and demand pull inflation. (b) Explain how a budget deficit of the government can cause inflation. (c)

Describe the terms inflation-deflation and inflation rate, Describe the ter...

Describe the terms inflation, deflation, and inflation rate and price stability. Inflation and Deflation: a. An increasing aggregate price level is called as inflation.

Elasticity, how the concept of elasticity used for decision making

how the concept of elasticity used for decision making

Net exports, Net exports normally decrease with the effect when aggregate o...

Net exports normally decrease with the effect when aggregate output decline. When a concretionary fiscal policy is implemented net exports will go up . When government maintain the

#title.BUS100., Find 1-3 articles that discuss the competition between Targ...

Find 1-3 articles that discuss the competition between Target and Walmart.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd