M4-S1 The Deal
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Does this EBP articulate a value-added deal structure by describing:
- funds required; the amount of cash investment required for growth and the use of the proceeds.
- the offer; for equity financing the offer. almost always stated as a % of the equity in the venture.
- the retum; is commonly stated as an annual retum on investment.
- exit strategy; the most likely mechanism in which in the investor can expect to receive the initial investment back plus the retum.
- Exit horizon; the approximately length of time the investment will be lliquid.
Rating: Low: Only 1 or 2 of the expectation items are present in the EBP Medium: 3 of the expectation items are present in the EBP High: 4 of the 5 of the expectation items are present in the EBP