more than Metapath has previously raised in all four rounds combined‚ so RSC is taking on more risk by offering this much funding. Because RSC will be putting up so much cash‚ RSC is going to want stricter terms to compensate them for their risk. In addition‚ Metapath has a
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stretch! Metapath Software 1. How has Metapath’s ownership structure changed with each round of financing? How has Metapath’s financing history affected the offer from Roberston & Stephens (RSC)? Straight-redeemable‚ cheap common structure in first two rounds by STI and Bessemer Third and fourth rounds were standard convertible preferred stock instruments 2. What is your estimate of a fair valuation of Metapath? 3. What are the immediate and future costs and benefits to the Metapath shareholders
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Metapath was a hi-tech company providing software products for wireless carriers. It had a revenue of 22 million and was emerging as the premier company in its market space. The ultimate goal of the founder‚ Hansen‚ was to see the Metapath go IPO in two years. However‚ this company confronted two main obstacles for that goal: concentrated customers and fluctuant quarterly revenues. To expand his business and also solve these problems‚ Hansen need to again raise more money. Like most of the software
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The purpose of this briefing note is to provide recommendations for Metapath Software Corp. (“Metapath”) on its financing offers received in September 1997. These two offers came from 1) a fund consortium led by Robertson Stephens Omega Fund (“RSC”) and Technology Crossover Ventures (“TCV”) and 2) CellTech Communications (“CellTech”)‚ a vendor of wireless technology which had recently gone IPO. 2. EXECUTIVE SUMMARY Metapath has made good progress in developing its business since its inception
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BUFN 755 Entrepreneurial Finance and Private Equity Case Questions Assignment 3: Metapath Software: September 1997 Questions: 1. Analyze Metapath’s capital structure‚ in particular the various forms and prices of preferred stock from the multiple previous rounds of financing. How has this capital structure affected the offer from Robertson‚ Stephens? How would RSC’s participating preferred interact with the other tranches of preferred stock? 2. How do you analyze the RSC offer? In particular‚
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Metapath Software OUTLINE • What happened. • The broader themes: – The interplay of terms. – Options in private equity. WHAT HAPPENED (1) • The Company turned down Cell Tech: – Offering 30% of their capitalization indicated that their base business had limited upside. – Clearly there were ongoing financing risks and liquidity issues. – The fit was not compelling. • Cell Tech stock fell $9 --> $3 – After 3 years and several acquisitions‚ it rebounded. WHAT HAPPENED (2)
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(Draft Syllabus‚ subject to change) BUFN 755 Entrepreneurial Finance and Private Equity Stephen Wallenstein 4458 Van Munching Hall 301-405-7177 (office) 919-452-2112 (cell) HYPERLINK mailtoswallens@rhsmith.umd.edu swallens@rhsmith.umd.edu The class will meet Tuesdays from 625 pm to 1000 pm at the Reagan building from January 24 to March 6‚ 2012.Course Description This course examines the finance‚ economics and law strategies that underlie private
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Case: Honest Tea B. Case: UltraVisual Medical Systems Week 4: A. Case: Dropbox “It Just Works” B. Case: Horizon Communications Week 5: A. Case: RightNow Technologies B. Case: edocs‚ Inc. Week 6 : A. Case: Metapath Software Private Equity B. Case: Kirk Riedinger and Jamie Turner Week 7: A. Case: Pacific Source International Dimensions B. Case: Ducati & Texas Pacific Group: A “Wild Ride” Leveraged Buyout Week 8: A.
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STRATEGIC GROUP THEORY: REVIEW‚ EXAMINATION AND APPLICATION IN THE UK PHARMACEUTICAL INDUSTRY by Graham Leask & David Parker Graham Leask‚ Aston Business School‚ Aston University‚ Birmingham B4 7ET‚ UK and David Parker‚ Cranfield School of Management‚ Cranfield University‚ Bedfordshire MK43 0AL‚ UK ACKNOWLEDGMENT The authors would like to acknowledge the valuable assistance of IMS Health in the preparation of this manuscript‚ in particular the assistance of Alan Johnson‚ and the helpful
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Global Pharmaceutical Industry Analysis September 21 2009 Dibakar Mitra (P08017) I Manoj Joshi (B08026) Table of Contents EXECUTIVE SUMMARY 3 INTRODUCTION 4 ORIGIN AND EVOLUTION 5 ENVIRONMENT ANALYSIS (PEST) 7 STRUCTURAL INDUSTRY ANALYSIS (PORTER) 8 STRATEGIC ISSUES FACING THE INDUSTRY 11 STRATEGIC GROUPS IN THE INDUSTRY ACCORDING TO MARKET/DRUG/FUNCTIONING 15 PROCESS FLOW: IMPORTANT FUNCTIONS 16 STRATEGIC RESPONSES TO CHALLENGES: SIMPLE CORRELATION BETWEEN GROUP
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