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Unformatted text preview: Bank Documents: The Devil is in the Details Case GEB5114 - Entrepreneurship and Venture Capital October 30, 2011 1. Outline the transactions. Include the flow of funds among the individuals and the corporations. November 2000: The Parent Company’s (TPC) Acquisition of The Retail Company (TRC) TPC Raises $500k from its Existing Investors Non-Competition Agreement for TRC’s Owner & COO $2.5M Cash from TPC 100% of TRC’s Stock August 2001: The Parent Company (TPC) Merges with The Distribution Company (TDC) 20% Stock of TPC + Consulting Contract + Non-Competitive Agreement TDC Owners TPC Raises $3.2M from Venture Capitalists Infused into TDC’s Working Capital 2. What specific risks was the bank trying to protect itself against? Which specific terms were intended to provide the protection? Specifically, the bank was trying to protect itself against the risk that TDC would default on their loan and not make any interest payments or repay the full outstanding principal balance. They were concerned because of make any interest payments or repay the full outstanding principal balance....
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This note was uploaded on 03/07/2012 for the course GEB 5114 taught by Professor Gentry during the Fall '11 term at University of Florida.
- Fall '11