Key - Cap Table Review

Key - Cap Table Review - REVIEWASSIGNMENT Work-out problems...

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REVIEW ASSIGNMENT Work-out problems A. You found a great company to buy. You agree to buy the company for $20,000,000. You are going to give yourself a carry and then bring in an investor to fund the $20,000,000. After you do that, you form a 15% option pool. What does the cap table look like? Primary % Fully Diluted % Me 20% 17% Investor 80% 68% Option Pool 0% 15% Note: You can use a different carry (like 5% or 15%). Just make sure you dilute your primary ownership correctly. B. Fill in the yellow blanks Question 1 Question 2 Question 3 Question 4 Question 5 Company Pre-money $12m $8M $16M $7.2M $6m Company Post-money $15m $10m $20M $8m $7M Mike's Investment $3M $2m $4m $800K $1m Mike's purchase of existing shares $5m Mike's ownership (post-investment) 20% 10% 14% C. Explain at least two common preferences and conditions associated with Preferred Stock Agreements. Multiple answers. D. You are asked to value a company with $10,000,000 in revenues and $1,000,000 in EBITDA. You know that a comparable company recently sold for 4x EBITDA. The company you are
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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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Key - Cap Table Review - REVIEWASSIGNMENT Work-out problems...

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