1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga2289 [7]
3 years ago
8

Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. Th

ey are asking for $10 million, the amount they think they will need over the next three years to reach cash flow positive. They have a pitch deck that includes a proposed deal. They are offering you 25% of the company. The founders own the remaining 75%. You will buy common stock, and are entitled to one of four seats on the board of directors; they hold the other three seats. One slide in the deck contains a detailed prediction of the value of the company. If you invest $10 million, you will own shares that are worth at least $50 million at the end of the third year.
Required:
a. What do you think of this proposed deal?
b. What counteroffer would you make?
Business
1 answer:
Vitek1552 [10]3 years ago
8 0

Answer:

Explanation:

The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.

The counter-offer will include raising a proposed equity percent rate to half  (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.

You might be interested in
What is Ezy MultiStores?
frutty [35]

Answer:

This is a cloud based platform that allows you to create profit generating "Authority E commerce Affiliate stores"by letting you add products from major E commerce networks without any other approval hassles

5 0
3 years ago
Read 2 more answers
Write any two things that girls do earlier.​
olya-2409 [2.1K]
Wait what do you mean? do you mean like things girls can do earlier than boys? well i would say girls become more mature before boys do. Also, i would say girls can learn how to do hair earlier than boys. i’m sorry if that wasn’t your question but i’m just trying to help :)
7 0
3 years ago
Read 2 more answers
A man walks around a circular park 4 times in 12 minutes. The radius of the park is 49m. Find the speed of the man in km/h.​
lilavasa [31]
Suge the reason its suge is because this dababys hit song which landed up on baby on baby album. Remember blame it on baby BOP Suge ROCKSTAR.
7 0
3 years ago
What is meant by centralised direction
Alla [95]

Centralized direction explain why we often overestimate how well we can predict future actions of others.


I hope that's help:0

5 0
3 years ago
The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchase
umka21 [38]

Answer:

It is more profitable to raise the selling price by $2.

Explanation:

To determine whether the company should raise the selling price, we need to determine the effect on income. <u>The best option is the one with the higher sales revenue.</u>

Sales revenue= selling price * number of units

<u>Current:</u>

Sales revenue= 5.5*2,200= $12,100

<u>Proposal:</u>

Sales revenue= 7.5*1,800= $13,500

It is more profitable to raise the selling price by $2.

7 0
3 years ago
Other questions:
  • A taxable bond with a coupon rate of 6.00% has a market price of 98.19% of par. The bond matures in 9.00 years ans pays semi-ann
    14·1 answer
  • When elasticity of demand is equal to one and the change in the quantity demanded and the change in price are exactly proportion
    13·1 answer
  • Newark Company has provided the following information: Cash sales, $540,000 Credit sales, $1,440,000 Selling and administrative
    11·1 answer
  • Organization development is a systemwide application of ________ knowledge to develop, improve, and reinforce the strategies, st
    5·1 answer
  • Which of the following represents a reason for globalizing operations? Select one:
    12·1 answer
  • Starbucks Corporation is the premier​ roaster, marketer, and retailer of specialty coffee in the​ world, operating in 68 countri
    10·1 answer
  • 1. Choose a real or made up example of a company, and describe at least three variable costs the
    10·1 answer
  • Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current pe
    13·1 answer
  • a method that business operators can use to maintain a good customer base is to? A respond to customer B ignore customer feedbac
    11·1 answer
  • A man budgeted $200 a month for clothing. This month the man spent $150 on clothing therefore that budget item is considered to
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!