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Finance 374S- Entrepreneurial Finance Assignment 8: Walnut Venture Associates (D)-part I Bob O'Connor has asked you to evaluate the offer he has received from
Finance 374S- Entrepreneurial Finance Assignment 8: Walnut Venture Associates (D)-part I Bob O'Connor has asked you to evaluate the offer he has received from the RBS Group. In your analysis give consideration to the following points: 1. What are the vesting provisions? What is happening to O'Connor's stocks? 2. Who will control the company if this deal is done in the terms described? 3. What share of the company's value do the investors have a share on? 4. How do the proposed securities impact on existing investors' risk and return? 5. Describe the payoffs to the Redeemable Preferred (RP) and Convertible Preferred (CP) as a package of securities in five years. Remember that there are dividends that accrue. At what point would the CP holders convert?
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