inst round 1 Assignment: Outreach Networks (ORN) 1. IORN a typical start-up company? Do any...
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inst round 1 Assignment: Outreach Networks (ORN) 1. IORN a typical start-up company? Do any of its particular characteristics give Peres an opening to push back on the terms of the deal? 2 What circumstances strengthen Perez's bargaining position? 3. How is DCF differs from the VC method? Or Why two methods are different? 4. Given the high equilty stake Everest Partners is demanding should Perez take the offer? How much equity stake is VC sponsorship worth? Justify your position using the valuation approaches given below Complete the following using the template a VC view Scenario 1:T: Apply the average EBITDA multiple (use the comparable company data) to calculate the Terminal Valve (TV) and use 50% target rate to discount the TV. Find the equity stake. Scenario 2: Apply the median EBITDA multiple (use the comparable company data) to calculate the TV and use 50% target rate to discount the TV. Find the equity stake. Calculate new shares issued, total shares issued, and the share price after the deal. b. Perez View Scenario 1: Apply the average EBITDA multiple (use the comparable company data) to calculate the TV and use 40% target rate to discount the TV. Find the equity stake. Scenario 2: Apply the appropriate comparable PE ratio (use the comparable company data) to calculate the TV and use 40% target rate to discount the TV. Find the equity stake. C DCF model: Calculate the equity stakes applying both perpetuity and exit multiple model (use average EBITDA multiple) Determine the discount rate using the CAPM model using the assumptions given in the case inst round 1 Assignment: Outreach Networks (ORN) 1. IORN a typical start-up company? Do any of its particular characteristics give Peres an opening to push back on the terms of the deal? 2 What circumstances strengthen Perez's bargaining position? 3. How is DCF differs from the VC method? Or Why two methods are different? 4. Given the high equilty stake Everest Partners is demanding should Perez take the offer? How much equity stake is VC sponsorship worth? Justify your position using the valuation approaches given below Complete the following using the template a VC view Scenario 1:T: Apply the average EBITDA multiple (use the comparable company data) to calculate the Terminal Valve (TV) and use 50% target rate to discount the TV. Find the equity stake. Scenario 2: Apply the median EBITDA multiple (use the comparable company data) to calculate the TV and use 50% target rate to discount the TV. Find the equity stake. Calculate new shares issued, total shares issued, and the share price after the deal. b. Perez View Scenario 1: Apply the average EBITDA multiple (use the comparable company data) to calculate the TV and use 40% target rate to discount the TV. Find the equity stake. Scenario 2: Apply the appropriate comparable PE ratio (use the comparable company data) to calculate the TV and use 40% target rate to discount the TV. Find the equity stake. C DCF model: Calculate the equity stakes applying both perpetuity and exit multiple model (use average EBITDA multiple) Determine the discount rate using the CAPM model using the assumptions given in the case
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