Assignment 4

Read PowerWater Beverages, Inc. case

Based on the information you find in the case material and the techniques you have learned in this course, please provided a pre-money valuation and a post-money valuation for PowerWater Beverages, Inc. You must tell me the techniques you will use up front, show your initial calculations, and explain your findings. Submit through Turn-it-in Assignment link. 

Understand that the addition of a chunk of money into any company’s account immediately makes it more valuable. If we value Google at $1 billion and then we throw $1 million dollars into their bank account, then the value of Google has immediately increased by $1 million. Similarly, growing businesses are valued at a pre-money valuation in order to establish most of the deal terms and the post-money valuation becomes the pre-money valuation plus the amount of money invested in the company. It is important to establish both numbers and understand which number you are discussing when negotiating with an investor.

For this assignment, you must use multiple techniques to establish a valuation for PowerWater Beverages (each technique will give you a different valuation), decide how much to weigh the result of each technique, and establish a final pre and post-money valuation.

Grading

Pre-money valuation and explanation – 5 points

Post-money valuation and explanation – 5 points

Explanation of techniques, calculations, and correct use – 10 points

Format

Name

Assignment info

Pre-money valuation

• Techniques that will be used
• Calculations
  • • name of technique
    • info needed
    • calculation
    • explanation
• Valuation

Post-money valuation

• Technique
• Calculation
• Valuation