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Answer the following question: Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well-established high-growth IT firm. SVI's investment policies
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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 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 6xStep by Step Solution
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