In 2011, King Ventures has invested $1 million to Studyguide and received 50,000 shares. In 2016, the company is in negotiation with Realstudy for possible M&A. For the year 2016, the expected sales revenues of Studyguide is $100 million with earnings of -$10 million.

• The number of existing shares = 10 million shares
• Employee stock options: 500,000 shares

Similar companies in the industry is trading at a sales multiple of 10. If the deal is successful, the expected synergy value for the Real study is estimated to be $200 million.

1. What is the status quo value and the expected maximum pay of StudyGuide.?

2. What is the expected IRR and TVPI of King Ventures?