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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

  1. 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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