Looking for help to answer the below question, can someone please explain the difference to me:

9) From the perspectives of the investors, explain how a $100 million sale to a strategic buyer through a merger or consolidation is different from a $100 million IPO.

Your response should demonstrate your understanding of the concepts - liquidation preference and optional conversion between the two term sheets.

Note that the Liquidation Preference term in both term sheets specifically states that a merger or consolidation will be deemed as a liquidation event. Inferred in the term sheets is that an IPO is not a deemed liquidation event. Under the Mandatory Conversion section of the term sheets, the Regent and Bantam term sheets each have different hurdles (Regent: 10X) and (Bantam: 5X and Preferred Stockholders have option to convert) for what qualifies as an IPO.