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Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well-established high-growth IT firm. SVIs investment policies mandate that its minimum
- Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well-established high-growth IT firm. SVIs investment policies mandate that its minimum investment is $5 million per round, its investment harvest must occur within 6 years, and that, at closing of an investment round, it may own no less than 25% and no more than 49% of the fully diluted shares of a company. Given the outlook outlined below, demonstrate how SVI is within its policy to proceed with the proposed investment.
Scenario | Probability | Annual EBITDA | EBITDA Multiple |
Positive | 30% | $16 million | 13x |
Baseline | 50% | $10 million | 9x |
Negative | 20% | $6 million | 6x |
there is no other information to add unfortunatly.
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