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UNM Ventures is an entrepreneurial firm that manufactures Nano chips for supermarkets. You have been hired by the CEO of UNM Ventures to determine if he should take an offer of investment of $1.0 million from a VC investor in return for a 40% equity stake. Your first task is to value the company. You have already drawn the pro forma financial statements for the company (Exhibit 1). Since this is a new company you decide to look at the Nano manufacturing industry and find comparable companies. After extensive research you shortlist 3 companies: 1) Advanced Micro 2) Lightspeed Inc 3) Particle Inc You compile salient data about financials as shown in the Exhibit 1. UNM Ventures Pro Forma Income statement is projected for next year and is considered as representative for current exercise. Competitor's financials are the latest available. You can assume an illiquidity discount of 25% applies to the UNM Ventures. Exhibit 1: \begin{tabular}{lccc} Latest Share Price(\$) & 20.5 & 65.4 & 3.05 \\ \begin{tabular}{l} Shares Outstanding(in \\ millions) \end{tabular} & 1.1 & 2.5 & 0.8 \\ \begin{tabular}{l} Debt(\$m from balance \\ sheet) \end{tabular} & 3.40 & 75.00 & 3.50 \\ \begin{tabular}{l} Cash ($m from balance \\ sheet) \end{tabular} & 1.40 & 6.70 & 0.02 \end{tabular} Enterprise Value of UNM Ventures based only on EV/E multiples is(\$Mil)? (Ignore illiquidity discount and round to two decimal places) 3.0212.265.905.05 Question 5 Enterprise Value of UNM Ventures based only on EV/Sale multiples is(\$Mil)? (Ignore illiquidity discount and round to two decimal places) 3.625.003.025.05

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