Pre and post transactions valuations, Business Economics

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?

Posted Date: 4/3/2013 1:36:18 AM | Location : United States

Related Discussions:- Pre and post transactions valuations, Assignment Help, Ask Question on Pre and post transactions valuations, Get Answer, Expert's Help, Pre and post transactions valuations Discussions

Write discussion on Pre and post transactions valuations
Your posts are moderated
Related Questions
Lottery Ticket Win! You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the pre

How can value management be utilized to compare various possible design solutions? When the bottom-level objectives for a project have been acknowledged through these technique

What are Rostowís policy implications? • LDCs (Less Developed Countries) require aid. The development procedure can stall at the Take Off stage for be short of savings. 15

is indian companies running a risk by not giving attention to cost cutting?

Problem: i) Evaluate the following statement: "The First Theorem of Welfare Economics states that as long as producers and consumers act as perfect competitors and there ar

Suppose you have ten individuals with values ( $1, $2, $3, $4, $5, $6, $7, $8, $9, $10) . Your marginal cost of production is $2.50. What is the profit maximizing price?

Is the Washington Consensus actually a consensus? The Washington agreement thinking dominates development thinking in the developed world but is challenged through less develo

Problem: (a) Critically asses the difference between economic growth and economic development. (b) Describe the definition of economic development as a multidimensional pro

What factors affect Population Change? Population growth is affected by given factors: • Births from the 1960s birth rates have declined quickly inmost LDCs except which in

What is the Washington Consensus? The Washington Consensus is a set of polices arguments advocated through free market economists to motivate growth and it is at the heart of