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QUESTION 4 (25 MARKS) (a) Differentiate between professional venture capitalist and angel investors. (6 marks) (b) Explain why financial projections is important in a business
QUESTION 4 (25 MARKS) (a) Differentiate between professional venture capitalist and angel investors. (6 marks) (b) Explain why financial projections is important in a business plan submitted to a venture capitalist. (8 marks) (c) Discuss the three typical ways for a venture to harvest its business. (6 marks) (d) Given the following example: In 2020, Helang Sdn Bhd acquired Cahaya Mata Sdn Bhd for a purchase price of RM20 million. The deal was financed with RM1 million in cash, while the rest was borrowed by issuing bonds. A year and a half later, Helang Sdn Bhd sold Cahaya mata Sdn Bhd for RM100 million, with investors earning enormous returns from their initial equity invested. Explain the type of buyout for the above example
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