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5. Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well- established high-growth IT firm. SVI's investment policies mandate that
5. Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well- established high-growth IT firm. SVI's investment policies mandate that its minimum investment is $5 million per round, its investment harvest must occur within 6 years, and that, at closing of an investment round, it may own no less than 25% and no more than 49% of the fully diluted shares of a company. Given the outlook outlined below, demonstrate how SVI is within its policy to proceed with the proposed investment SCENARIO POSITIVE BASELINE NEGATIVE PROBABILITY 30% 50% 20% ANNUAL EBITDA $16 million $10 million $6 million EBITDA MULTIPLE 13x 9x 6x 5. Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well- established high-growth IT firm. SVI's investment policies mandate that its minimum investment is $5 million per round, its investment harvest must occur within 6 years, and that, at closing of an investment round, it may own no less than 25% and no more than 49% of the fully diluted shares of a company. Given the outlook outlined below, demonstrate how SVI is within its policy to proceed with the proposed investment SCENARIO POSITIVE BASELINE NEGATIVE PROBABILITY 30% 50% 20% ANNUAL EBITDA $16 million $10 million $6 million EBITDA MULTIPLE 13x 9x 6x
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