Question
Can you give me all the exact formulas you used in these answers? Projected Exit Value in 2028:- Samantha Smith expects a 4x to 6x
Can you give me all the exact formulas you used in these answers? Projected Exit Value in 2028:- Samantha Smith expects a 4x to 6x Price-to-Sales multiple for NewVenture. Given the projected revenue of $30 million in 2028, the exit value can be estimated between $120 million (4x) and $180 million (6x). 2.DCF Model for Valuation in 2028:- To calculate the Discounted Cash Flow (DCF) value in 2028, we need to project the future cash flows and discount them back to present value. However, without a discount rate, it's not possible to provide a precise DCF value. The range given by Samantha Smith seems reasonable based on the potential exit value. 3.Impact of Lower Growth or EBIT Margins:- If there's lower growth or EBIT margins, Samantha should adjust her projected multiple downwards. A less optimistic outlook would likely result in a lower valuation multiple. 4.Share Ownership and Implied Valuation:- Assuming a required rate of return of 50% and an anticipated exit value of $150 million, SaaS Capital would need to own 33.33% of the company in January 2024. The implied pre-money valuation is $100 million, and the post-money valuation is $150 million. 5.New Shares, Share Price, and Ownership:- To calculate the number of new shares and the share price, we need the total pre-money valuation. Given the pre-money valuation of $100 million and 1,000,000 existing shares, SaaS Capital should purchase 333,333 new shares at a price of $150 per share to maintain a 33.33% ownership. 6.Management Share with Option Pool:- If the option pool is created after Samantha's investment, she should insist on a 50% ownership to accommodate the 15% share for management options. If the option pool is allocated before her investment, she should insist on a 48.5% ownership.
For example, in question 4 till 8, how did you came up with 33.33% and 333.33 shares. It is not clear for me. Moreover, can you make an assumption for the discount rate so we can also answer question 2?
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