Assignment - Andy's Aerospace

Assignment - Andy's Aerospace - Andys Aerospace Balance...

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Andy’s Aerospace Andy’s Aerospace is looking to raise $3 million of growth capital. Your job is to: Value the company today – enterprise and equity value. Explain the methodologies you used and how you arrived at a number. Triangulate on a number. Provide an updated cap table showing this $3 million round How will this $3 million round impact the current owners? What type of stock will you purchase and what rights or preferences are associated with it? What would your IRR be if you invest? Assume the following: o Long term debt is interest and principal payments free for the next 5 years o You sell in 5 years o Project out your Income Statement for those 5 years o Determine the valuation of the company so you can determine what capital you receive at the sale. You should use a similar methodology to what you used to determine the value when you invested $3 million.
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Unformatted text preview: Andys Aerospace Balance Sheet ASSETS Cash 500,000 AR 3,888,889 PP&E 12,250,000 Other Assets 2,100,000 18,738,889 LIABILITIES AP 2,000,000 Other Short Term Liabilities 1,000,000 Long Term Debt* 4,000,000 7,000,000 Owners Equity 11,738,889 Income Statement TTM Revenue 35,000,000 COGS 20,000,000 57% Gross Margin 15,000,000 43% General & Administrative 9,100,000 Sales 2,560,000 Depreciation 490,000 12,150,000 EBIT 2,850,000 8% Current Cap Table Cap Table Shares Book Value $/Share Primary Ownership Fully Diluted Investor 1 10,000,000 $ 500,000 $ 0.05 31% 27% Investor 2 22,222,222 $ 2,000,000 $ 0.09 68% 59% CEO 555,556 $ 50,000 $ 0.09 2% 1% Total Primary 32,777,778 2,550,000 100% 87% CEO 3,000,000 $ - 8% CFO 1,000,000 $ - 3% CTO 750,000 $ -2% 4,750,000 13% Total 37,527,778...
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This note was uploaded on 03/06/2012 for the course BUS M 475 taught by Professor Gregpeterson during the Fall '11 term at BYU.

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Assignment - Andy's Aerospace - Andys Aerospace Balance...

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