As we know‚ cash is the most important factor to every company to exist and develop. Without cash‚ the business would not be able to survive. Cash is required for all activity of a company‚ such as buying new premises‚ investing on a plan‚ developing a product‚ buying new machines‚ equipments‚ etc… So every company always look for different sources of finance that can help them maintain and develop the businesses. There are various sources of finance that the companies need to consider in particular
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Mergers and Joint Ventures Introduction This week the team discusses the difference between Mergers and Joint ventures. A merger is any coming together of companies into one and invariably when two or more companies work together on a common goal is a joint venture. Below we discuss the different types of mergers and joint ventures. The types of mergers are as follows: horizontal‚ vertical‚ conglomerate‚ and lastly a joint venture. Horizontal Horizontal mergers occur when there is more
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Initially‚ the founder invested $800‚000 and received 8 million shares of stock. Starware now needs to raise a second round of capital‚ and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 20% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this
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-experienced partners in manufacturing and selling MEG -creating market leadership position -new business model with multiple sourcing positions in all region MEGlobal joint Venture with PIC and Dow‚ even though most joint ventures fail because of unclear objectives and cultural differences ‚ this joint venture was a success. Why it succeeded? -Dow owned assets in Canada that did not meet the company’s strategic priorities. -PIC owned only 1 asset and realized it was important to build
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Week 1 Assignment Chapter 1: Exercises/Problem #1 pp.33-34 1. [Financing Concepts] The following ventures are at different stages in their life cycles. Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing. A. Phil Young‚ founder of Pedal Pushers‚ has an idea for a pedal replacement for children’s bicycles. The Pedal Pusher will replace existing bicycle pedals with an easy-release
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gambit: funding strategic alliances with venture capital‚ Planning Review (Nov/Dec)‚ 36-41 (1988). 20th Annual Conference of the UK Academy of International Business‚ Pontypridd‚ Wales‚ 5-6 April (1993). 4. Jordan D. Lewis‚ Making strategic alliances work‚ Research-Technology Management (November/December)‚ 12-15 (1990). 5. Robert M. Randall‚ Upping the odds for strategic alliance success‚ Planning Review (July/August)‚ 30-33 (1989). 6. Jay E. Paap‚ A venture capitalist ’s advice for successful strategic
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facilities and a computer system to handle orders and facilitate the distribution of inventories. After considering the investment in inventories‚ the asset intensity or turnover is expected to average about two times per year. LearnRite estimates that venture investors should earn about a 40 percent average annual compound rate of return and sees an opportunity for a possible IPO in about six years. If industry consolidation occurs‚ a merger might occur sooner. The management team is headed by Srikant
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Short Write-up –Innovation across Firm Boundaries Xin Gu 1. What were some key problems in the Alpha-Omega alliance? What caused them? First‚ both firms were accustomed to getting their way" with alliance partners because of their market clout and size; but this situation was different. Since both companies rarely compromised‚ partnership discussions were arduous. At one low point‚ both sides refused to give in on a particular issue‚ and one team coldly got up and left. Second‚ one major hurdle
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Create investment criteria for Mr. Johnson that will outline what his company will be willing to evaluate for investing. The criteria will be created by you‚ which will be posted on the website to be seen by entrepreneurs. Here are some examples of criteria‚ but not limited to the following. * Development Stage: What stage does your investor prefer (concept‚ idea‚ break-even)? * Geographic Location: Location the investor prefers. * Industry: The industry your investor prefers. *
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Hansen need to again raise more money. Like most of the software companies‚ Metapath demands continuously money supply during the premature period of its life. The main financial strategy of Metaph was to raise several rounds of money by turning to venture capital investors: get money from them in exchange for Metapath’s preferred stock and a promise to redeem or convert to commom stock in event of IPO. It had raised $ 9 million in four rounds of financing before 1997‚ in which STI and Bessemer participated
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