1) What are the most important terms for Laracey? Founders’ termination term is very important for Laracey because it increases the possibility that the unvested equity of the founders could be accelerated when the incoming CEO terminates them. It directly protects the benefits of the founders. 2) What are the most important issues for Guerster? Mergers, redemption, reorganization of the company, or transfers of control of edocs are the most important issues for Guerster. These issues will directly influence his proportionate ownership of edocs. 3) What is 'liquidation preference/participation?' Both in general, and specifically in the proposed term sheet. Compare the term sheet to M-Y: what type of security (CP, RP, …show more content…
The uncertainty of the spending on technology made the investors not willing to pay as much as Papa asked. So Papa had to revaluate and lower the price for several times. However, it is sensible that Papa realized that he should go back to the market and look for the investment. 2) What are the key differences in the term sheets offered by the insider group and Ampersand? What explains the key differences? The Venrock/BVP offer an inside round at 98.5¢ per share. The pre-money was roughly $25 million. They would share the $10 million, with Venrock taking more to increase its ownership, and leave the round open for another $5 million, getting the deal done at $15 million with an option to close as high as $18 million. Ampersand offered at $1.25 per share, and full ratchet protection for the Series B investors. The effective pre-money, with ratchets, was $32.9 million. The key difference is the offering price. Papa told Ampersand that they could only make room for them if, Ampersand gave Endeca a term sheet that offered to lead an alternate deal at a significantly higher price by the day of the board meeting. Otherwise, it would be unfair to the insiders who had been extremely supportive throughout the entire process. And the insiders had really supported when Endeca needed it. If the insiders have worked very well and shares a common vision, it also is likely to involve a very important potential customer. So Ampersand had to offer a higher price to become
Right there was the opportunity to negotiate which would have helped Mr. McAleer from putting the company in a huge debt that kept the company from growing for the following ten years.
-Martin Industries just paid an annual dividend of $1.30 a share. The market price of the stock is $36.80 and the growth rate is 6.0 percent. What is the firm's cost of equity?
By negotiating on Liquidation terms, to vary by 1x, 2x, 3x and not the first $29.5 M on any sales.
b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
Because of the fact that BHC is a new venture ; the risk is actually high. Mortgage rate appears to compensate for the risk.When BHC had acquired $2,275,000 with a mortgage.
However, on the flip side, the price offered by RSC and TCV consortium was $6, which was significantly higher than the first three rounds of financing (tranches A,B and C) at
First, because Ampersand never invested in any firm in this industry yet, as a diversified investing firm, they are willing to take the chance to try new thing to invest on Endeca. Secondly, Ampersand has a long-standing connection to Endeca’s top management team, which is also Ampersand’s motivation to invest in Endeca.
We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.
1. Why might Bollenbach have opened his bidding for ITT at $55 per share? What was his likely strategy?
In 1988 their stock price was 130p per share with the offer of shares eight times over subscribed.
Robert thinks the value of his company is to high so he’s out. Daymond quickly follows suit. Kevin gives the first offer of $150K for a 50% stake and a 10% royalty for the products that Stephan creates. Stephan declines his offer so the only Shark left is Mark. Mark ends up offering $150K for 30% stake and the first right of refusal on future businesses. This sparks Kevin to come back in and offer the same deal at 25% stake. Ultimately he chooses to take Mark’s offer. The response from the rest of the Sharks was disbelief that he came to a deal. I agree after watching the debacle of a presentation.
Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.
The offer of $6 million raised other problems for Mr. Kaplan as he seemed unwilling to take the amount. He was not sure whether to sell the whole firm, negotiate to have the buyer increase the amount if he increased the percentage of the shares or come up with other strategies to generate extra income. It was the main case that raised the three subproblems among others such as his sales strategy. Additionally, if Kaplan were concerned with extra liquidity, he could have forgone the idea of adding an extra car and another company apartment.
2. What do you think of the broad objectives Immelt has set for GE? Can a giant global
This term sheet summarizes the principal terms with respect to a potential private placement of equity securities of [NAME OF CORPORATION] (the “Company”) by [NAME OF INVESTOR] (“Investor”) and related strategic alliance. This term sheet is intended solely as a basis for further discussion and is not intended to be and does not constitute a legally binding obligation. No legally binding obligations will be created, implied, or inferred until a document in final form entitled “Series Stock Purchase Agreement,” is executed and delivered by all parties. Without limiting the generality of the foregoing, it is the parties intent that, until that