power water beverages project

by

By now, you should have read, analyzed, and valued the company in the PowerWater case. You did this in Assignment 4 as an impartial and neutral observer. What I want you to do for the final project is to re-analyze the company as both the company’s board AND as the potential investor.

Read PowerWater Beverages, Inc. case. In doing your analysis, you may use outside information, but keep in mind that any market information should correspond to the timing of this case (2006) .Remember, this is the final project for the class and your opportunity to display your mastery of all of the subjects covered in class. Please be sure to show your work and explain each decision and assumption you are making.

*Ignore the Proposed Investment Options on page 15 of the case. These have nothing to do with the questions on this final. The investment that should be considered is a pure equity investment.

Your required to choose one of the two options:

  1. PowerWater Beverages, Inc. Board Perspective OR
  2. Investor Perspective

Board Perspective

Your job is to decide whether or not the management of PowerWater is making good decisions.

  1. Funding request: Has management identified the correct amount of money required? What is the runway for this business if they get the investment? What is the runway without the investment? – 25 points
  2. Based on the amount of investment you have identified as correct, what is the impact on the current owners and the capital structure if this new investment is accepted? – 25 points
  3. Does this venture still make sense to proceed with? Is PowerWater a good opportunity? – 25 points
  4. If the company finds an investor, describe the terms that you would expect to receive. Pay special attention to the amount of money changing hands, the ownership shares, and the covenants included in the agreement. – 25 points

Investor Perspective

As a potential investor in this venture, your job is to decide if this opportunity represents a good investment.

Assess the opportunity.

  1. Analyze the market, the team, and the plan. – 25 points
  2. Assess the financial runway for this company as it is and after receiving the requested $950,000 of investment. – 25 points
  3. If investing in this company, describe the terms that you would expect to receive. Pay special attention to the amount of money changing hands, the ownership shares, and the covenants included in the agreement. – 25 points
  4. What milestones would you like to see the venture hit (ie: hit $XMM in revenue by year 2XXX, hire a sales team by year 2XXX, get into stores in all 50 states by 2XXX). What decisions would you take if the company missed those deadlines? – 25 points