Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have completed the due diligence and every other essential requirement with your investor. You and your investors have been working together and your business

You have completed the due diligence and every other essential requirement with your investor. You and your investors have been working together and your business has been running smoothly. Your business has already been established with all the operational issues sorted out. The investment period of Lotus Holdings in your idea was 5 years which is now complete. As per the requirement, Lotus now has to exit. Please elaborate on various exit options available with the Lotus Holdings specifically focusing on the following questions:

Initial assessment of exit options has shown two possible exit options i.e., IPO and Debt Financing. You being the investors have to assess these possible exit options presented to you.

Focus on the merits and demerits of these exit options.

Make the assumptions as required and build a scenario with IPO and with Debt using the format provided in the following link: https://www.entrepreneurialfinance.net/courseware (FEF Chapter 11 IPO, FEF Chapter 10 Valuation with debt.

Present your final analysis on all the scenarios and suggest choosing any 1 option for exit based on the scenarios developed.

Discuss the new innovations that are changing the financing landscape of entrepreneurial firms specifically focusing on the following questions:

Explain in brief these new innovative financing mechanisms such as Crowdfunding and Initial Coin Offerings.

Illustrate one real-life example of each of these innovations from around the world. Discuss the reason for these innovations.

Do these innovative financing mechanisms exist in your own country? Why? Why not?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Recent Advances In Computational Finance

Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.

1st Edition

1626181233, 978-1626181236

More Books

Students also viewed these Finance questions