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Use First Chicago Method to place value on the company

Success Survival Sideways Failure 1. Revenue Growth rate (from base of S 1 55% 25% 15% 5.00 million) 2. Revenue level after 3 years; in the Failure scenario, the venture gets 7 liquidated due to failire 3. Revenue level after 5 years- IPO exit in the Success scenario 4. Revenue level after 7 years for the last 9 survival scenario 5. Ater-tax profit margin and earmings at 10 liquidity 60% 15% NA 6. Price-eamings ratio at liquidity 35 NA 7. Value of company at liquidity 12 8. Present value of company using discount rate of 35% 13 9. Probability of each scenario 0.35 0.45 0.2 14 10. Expeted present value of the company under each separate scenanio 15 11. Expected present value of the 16 company 12. Percentage ownership required in order to invest $4.00 million 19 20 21 IA 4. First Chicago Method Ready Success Survival Sideways Failure 1. Revenue Growth rate (from base of S 1 55% 25% 15% 5.00 million) 2. Revenue level after 3 years; in the Failure scenario, the venture gets 7 liquidated due to failire 3. Revenue level after 5 years- IPO exit in the Success scenario 4. Revenue level after 7 years for the last 9 survival scenario 5. Ater-tax profit margin and earmings at 10 liquidity 60% 15% NA 6. Price-eamings ratio at liquidity 35 NA 7. Value of company at liquidity 12 8. Present value of company using discount rate of 35% 13 9. Probability of each scenario 0.35 0.45 0.2 14 10. Expeted present value of the company under each separate scenanio 15 11. Expected present value of the 16 company 12. Percentage ownership required in order to invest $4.00 million 19 20 21 IA 4. First Chicago Method Ready

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