INTRODUCTION

After years as a teacher and principal, Stacey Boyd and HBS classmate Mandy Lee realized that the ability to track school and student progress was insufficiently developed. The Project Achieve was created to answer this need with the creation of, an information management system for schools. This project allows the management of information for administrator, professors, parents and students. Our team had to write a report about this company and to value the Project Achieve. We started by calculating the pre- and post money valuation, then the cash flow projections, and we finished by calculating, the expected return on equity and the final equity value. To facilitate the calculation of this value, our team made some assumptions that we will explain and justify all along that report.

ANALYSIS

A. PRE- AND POST-MONEY VALUATION

Initially funded by angel investors, the project had its first official round of funding of 544,000. We calculated the pre- and post- money valuation, before, and after this funding. Our only assumption in this valuation was to incorporate the number of stock options given to employees as common equity. As a result, the number of common shares increases from one million to 1083950.61728. (See Sheet Question 1 in Excel file)

To get a better valuation of that company, we went more in detail, to understand the real impact of a project like Achieve. We computed the expected cash flows for the next 10 years. But, cash flow analysis is a

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