Scor Estore.Com Essay

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Scor-eStore.com Recommendations International Consulting (IC) has been hired by Mr. Lance Bernard in his consideration of whether to proceed as part owner and venture capitalist in the Scor-eStore.com project. After careful review of the financial analysis of several options presented, IC has determined that all three options would yield a positive expected Net Present Value (NPV). IC recognizes that as a savvy investor, Bernard has a high risk tolerance and is fully aware of the potential for loss. Therefore, based on the analysis, IC would recommend that Bernard proceed in this tech start-up venture with the three options suggested by his friends as viable alternatives if the business does not progress as projected. All three options are discussed in detail in the following sections to explain the rationale behind this recommendation. If Bernard does choose to proceed with partnering in this venture, IC would also suggest the following adjustments in order to add value to his investment: 1. IC agrees with the suggestion of Bernard’s friend Bouchek to obtain more ownership and control of the business if Score-eStore.com becomes viable. We believe that Bernard’s idea of adding a clause in the start-up documents would allow him to pay an estimated $250,000 to buy additional shares of 17% in the company at the 18 month mark; thus giving him a controlling share of the company. 2. Bernard should negotiate a lower investment for the initial $90,000 start-up cost. This would allow a greater return on investment to Bernard and simultaneously provide a greater personal incentive for Burgess and Madsen to work diligently to ensure a viable outcome. Issues/Problems Identified Lance Bernard has been presented an opportunity to invest in a start-up web based business, but has enlisted the help of International Consulting to evaluate multiple

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