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
How could the quality culture behaviours be applied in a hospital? The total quality management approach and culture are extremely readily applied to a hospital. Usually, peopl

The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?

Explain, using the example of museum visits, own price, cross-price and income elasticity of demand; consider own price elasticity for various demographic groups. Use diagrams wher

why do businesses have to sped money (expenditure)in order to succeed?

Are the terms of trade (ToT) a problem? Problem : The terms of trade (ToT) of a country fall when its import prices rise quicker than the price of its exports. Less Developed

Mr. M enters into a contract with Mr. R under which R agrees to build a model railroad for $200. The value of the model railroad to M is $300. Expecting that the model railroad wil

What are Newly Industrialised Countries (NICs)? Newly Industrialised Countries: Recently Industrialised Countries (NICs) are LDCs which have undergone recent, quick indus

Why is debt management difficult in Less Developed Countries? One of the biggest challenges facing Less Developed Countries debt management is making sure $ interest payments c

Fiscal Policy The government's use of spending and taxation to affect the stage of macroeconomic moment. In theory, weak economic activity needs simulative fiscal policy, which

What is effectiveness of International Monetary Fund, in the promotion of development? Effectiveness of International Monetary Fund, in the promotion of development: Interna