some. Evaluate Heather's financing alternatives

- Arden & Company.

·A personal investment organization with good reputation

·Intend to do the complete deal

·Heather's friend performed for this company, so it was easy to procedure ·There was still no formal discussion within this deal when the holiday line was starting - Other venture capital firms

·An possibility to collect cash as beneath an emergency

·It would take a lot of time to talk with new company via a fresh start off ·It may a hard bargain than non-public investors

-- Helen Neil

·A tiny venture capital organization which was approached

·The owner was a verified designer, therefore she is acquainted with garment market ·This company had human relationships with companies and merchants, and these resources could possibly be useful for Heather Evans' new company ·This company lacked any genuine operating supervision

·The funding prerequisite was alliance as being a joint venture, which meant Helen's any deal was dependent upon the approval of Helen -- Private Buyers

·20 private buyers showed interested in investing in Heather's company, so that it was a big opportunity to acquire money ·Negotiating with each one of these investors required an amount of period ·It was very hard to structure the deal to fulfill the divergent interests of 20 personal investors ·The ownership structure might be too complicated, and Heather will feel challenging to control

five. Are Heather's expectations affordable regarding control, licensing, valuation and leave strategy? -- Calculation

Step 1 calculate identical company PRICE TO EARNINGS multiple utilizing the Liz Claiborne IPO valuation IPO value


Trailing EPS

dollar 19. 00

= being unfaithful. 60

$1. 98

2 $ 250, 000 (1. 50)2 sama dengan ROI sama dengan 562, five-hundred