ipl-logo

Trendsetter Inc. Case Analysis

1112 Words5 Pages

We have been presented with a situation in which, Wendy Borg and Jason Kushdog, founders of Trendsetter Inc., are looking for VC’s that would provide for their funding needs, to establish and scale their business. Trendsetter Inc. is a software startup that would provide innovative warehouse and distribution solutions to clothing retailers. They have received two “Term-sheets” that are basically a summary of the terms and conditions under which the VC’s are willing to invest in Trendsetter. One is from “Alpha Ventures” and the other from “Mega Fund”. Both are willing to invest $5 million into Trendsetter Inc. under certain conditions.
Before we go into the analysis of the Term sheets, there are a few points that we need to take into consideration …show more content…

Exhibit -2 shows the vesting option (for owner and employees) as offered by both the VC’s. Both VC’s have placed similar vesting options.
Owners are vested 25% at the time of financing (Year 0) and linearly then on for the next 3 years. Employees are not vested at the time of financing, but are vested 25% after the end of the first year. From then on the employees are vested linearly for the next four years (till year 5).
Exhibits - 3 & 4 show the vesting schedule for both VC’s and the associated yearly ownership % change. Inclusive of vesting, at the time of financing (Year -0) Alpha Ventures offers an implied owners value of $1.05 million, if revenue target is met, or $0.95 million, if revenue target is not met. If target is met, owner will own 17.36% of the company, but only 15.97% if target is not met.
Mega Funds offer the owners an implied owner’s value of $1.125 million (higher than the best case scenario of ALPHA) and the owners would own 18.37% of the company (more than ALHA’s best case

Show More
Related

  • Reconstruction Era Reading Assignment Analysis

    1077 Words  | 5 Pages

    Do NOT simply copy the wording from the text. Also, I strongly encourage you to read through the questions first and then read the textbook passages. This way you will know what specific information to pay attention to as you are reading. Your answers to these questions MUST be uploaded to Turnitin.com by 12:00 noon on Sunday, 1/10/2016.

    Read More

  • Business Case Study: Jurlique International Pty Ltd.

    2179 Words  | 9 Pages

    INTRODUCTION:- Jurlique International Pty Ltd. is an Australian cosmetics manufacturer specializing in natural botanical-based skincare and cosmetics under the brand name Jurlique. Jurlique is considered ethical and environmentally friendly. Jurlique was founded in 1985 the Australian state of South Australia by Dr Jurgen Klein and his wife Ulrike. The company 's name is based on a phonetic combination of their first names.

    Read More

  • Tim Armour

    423 Words  | 2 Pages

    Capital Group is an elephant. Led by Timothy D. Armour as its chairman and principal executive officer, the Capital Group Companies manage over $1.4 trillion in assets, employ over 7,000 people, and has a history that goes back over 80 years. Tim Armour has over 33 years of investment experience, all at Capital Group. He has championed in-house research of the long-term benefits of active fund management. Tim was instrumental in Capital’s decision to lift some of the secrecy around its operations and share more information with the media.

    Read More

  • Topcat Case Study

    1293 Words  | 6 Pages

    See RPA at 3. Similarly, in Detroit Lions and Billy Sims v. Jerry Argovitz, the court held that the agent “irreparably breached his fiduciary duty” because the agent did not disclose to the player that he became a part owner of the team; he did not seek final offer from another team and ultimately signed the player to his team. Here, Topcat has a minority stake in AND1, which means that it is in his, and

    Read More

  • Mapleton Family Medicine Case Study

    1323 Words  | 6 Pages

    Mapleton Family Medicine can be closely compared to countless other family medicine facilities throughout the US, a small family practice establishment struggling to keep up with providing fast but efficient care within a small city. With wanting to raise productivity without hindering patient care, the owners have hypothesized an incentive system plan to move the establishment in the right direction. However, will the plan actually be effective in accomplishing these goals? Based upon the case questions within the experiential exercise, I will work to answer any problems addressed, giving away to a better understanding of the possible obstacles within the development of their incentive system plan.

    Read More

  • Pixar Merger Analysis

    2869 Words  | 12 Pages

    Investment Banking Report “Mergers and Acquisitions” Student Names and Numbers Despo Michaelidou - Ioanna Panayiotou - Mikaella Savva - 20140213 Katerina…. Svetlana…. Introduction Back in 2006, a merger & acquisition agreement between two well-known companies set the basis for the continuation of the evolution in the animation industry. Being partners for more than a decade, Disney and Pixar eventually merged, after a number of unsuccessful attempts.

    Read More

  • Tesla Motors Essay

    1736 Words  | 7 Pages

    Tesla Motors is an American-based company that deals majorly with designing, manufacturing and selling of electric cars as well as electric vehicle powertrain components. Since its formation by a group of Silicon Valley engineers in 2003, Tesla Motors Company has gained global fame and incomparable customer loyalty. Tesla Motors have significantly grown from the year of its commencement till now. The sales and revenue of the company has increased year after year which is evident from its annual report. In the year 2011, the company has generated revenue of 204.224 million which has considerably increased to 4.05 billion in 2015 (Marketwatch, 2016).

    Read More

  • Capital Finance Case Study: Bankruptcy

    1309 Words  | 6 Pages

    Bankruptcy is a time of turmoil and uncertainty in any company, in addition to employees leaving and a loss of confidence from vendors and customers, management is restricted in their ability to make decisions and navigate the company. Because of the heightened uncertainty, many investors abandon the company, greatly reducing the value of the company, making the process even more difficult. However, savvy investors can generate large returns by entering the company at the right time as it begins to rebuild, so long as they can determine which companies will fail, and which will recover. H Partners is currently engaged in this process with Six Flags, having already gathered substantial returns on Six Flags’ senior debt, H Partners is determining

    Read More

  • Competitive Case Analysis Of Wilkerson's Company

    1770 Words  | 8 Pages

    EXECUTIVE SUMMARY   TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15   INTRODUCTION   COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.

    Read More

  • Swot Analysis Of Skillshare

    1415 Words  | 6 Pages

    In perspective of minimizing the possibility of disappointment, the founders of Skillshare contributed a considerable measure of time and resources on examination and distinguishing issues that will obstruct the accomplishment of their company. A strict spending plan of USD$5000.00 was dispensed for the business to fire up as the founders would not need a monetary blow should the business neglect to emerge. After it’s commencing in 2011, the interest for Skillshare’s services vary from time to time. This turns out to be a test for the founders.

    Read More

  • Buffett Case Study

    1327 Words  | 6 Pages

    Q3. How much value, if any, does Buffett derive from the credit agreement? There are two parts of the credit agreement, the 8-year term loan and the penny warrants. The $400 million term loan accompanying with a $45 million revolving credit facility will give Buffett a chance to earn at an interest rate of 10.5%.

    Read More

  • Case Study: Supermax Corporation Berhad

    974 Words  | 4 Pages

    SUPERMAX Corporation Berhad should be aware of their cultural differences in the workplace. Since there have a lot of different race in Malaysia and also most of the workers are from the different background so it can easily cause communication barrier happen between all the workers within the workplace. SUPERMAX should treat this issue seriously and handle it properly in order to avoid misunderstanding and tension between employees. It is vitally significant that there is a good relationship between all the employees and also the superior because it can affect the company’s productivity and efficiency. SUPERMAX should have cultural sensitivity in order to create a harmonious atmosphere in the workplace at the same time it can improve the performance of the company.

    Read More

  • Sembcorp Industries Case Study

    974 Words  | 4 Pages

    Sembcorp Industries (SCI) is a Singapore-based industrial conglomerate with business interests in: 1) utilities (primarily on electricity generation and wastewater treatment); 2) offshore/marine through its 61%-owned subsidiary Sembcorp Marine; and 3) urban development (developing industrial parks). SCI is 49.55%-owned by Temasek (AAA/Aaa), a government-owned holding company that has equity stakes in several strategic companies in the country. Investment Rationale : We rate SCI as BBB with one notch uplift from the potential support from Temasek. The rating is underpinned by its strong track record in utilities and marine business.

    Read More

  • Montagne Company Case Summary

    949 Words  | 4 Pages

    Business risk of GSAP they are going to buy: that it will not fail o Business risk= more business risk means more variability in operating profit which means a higher beta so adjust the Beta coefficient to match it with the level of financial risk incurred by the company. • Beta: Sterling’s proposed acquisition is 0.99 (beta is leveraged on the debt/equity ratio) [Exhibit 7] • Growth opportunities were limited and its business was under constant pressure • The company’s annual sales volume (in units) had increased by less than 1% per year, because of weak growth in overall demand and other company competition, which gives consumers the ability to choose other products • Business risk of buying at $265 million: relevantly low (where there

    Read More

  • P-Political Factors Affecting Toyota Motor In India

    1469 Words  | 6 Pages

    P-Political factor: - In the political factor, this alludes to government approach for example, the utilization of renewable vitality. Political choices can affect on numerous indispensable ranges, for example, the earth of the workforce, the people 's wellbeing and the quality of innovation, for example, crossover framework. There are few points under the political factor that affects the Toyota motors in the Indian market like… Government support and attachment in businesses of Toyota Motor in India. There has additionally been a proposal for expense unwinding on venture of more than Rs. 500 Crore.

    Read More

More about Trendsetter Inc. Case Analysis

Open Document