Entrepreneurial Finance and Private Equity

Class #11 – Tuesday, November 19, 2002

Exit Strategy

 

Case:    USInternetworking:  Third Round

 

Network File:   USi(third round).xls

 

Guest Speaker:   John May, Managing Director, New Vantage Group

 

  1. How much progress has USi made from the second-round to the third-round decision?  Is USi “ready” to go public?

 

  1. In actuality, how divergent are McCleary’s and Frank Adams’ view of the situation?

 

  1. Chris McCleary seems concerned about the dilution that might occur with another round of private equity.  How would an IPO prevent this?

 

  1. Estimate the value of USi with a third round of private equity versus an IPO.

 

  1. Assuming Adams has the upper hand here, which alternative should he choose?