Question
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?
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