Assignment details

Text book
https://ebookcentral.proquest.com/lib/UOW/detail.ac
tion?docID=6034088
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user name : ma744
password : home5883623
https://moodle.uowplatform.edu.au/course/view.php?
id=25314 (for lecture notes)

answer can be found from the book which link is given

above.
Case study- special technologie start from pg-649.
Question are on pg-673. But you comfort I already
write all question below if there is any confusion you
can login in up given link and go straight into book.

Questions

A. Describe Spatial Technology’s business model in

terms of revenues, profits, and
cash flows.
B. What intellectual properly, if any, does Spatial
Technology possess?
C. Describe the experience and expertise
characteristics of the management team.
D. Describe Spatial Technology’s pricing and marketing
strategy.
E. Discuss the competition faced by Spatial Technology
in conjunction with
3D modeling technology in general and specifically
with its ACIS product.
F. Describe the four successful rounds of venture
financing (A through D) achieved
by Spatial Technology in terms of sources and
amounts. What additional financing sources have been
used?
G. Conduct a ratio analysis of Spatial Technology’s past
income statements and balance sheets. Note any
performance strengths and weaknesses and discuss
any ratio trends.
H. Use the cash flow statements for Spatial
Technology, Inc., to determine whether
the venture has been building or burning cash, as well
as possible trends in
building or burning cash.
I. Discuss possible reasons why Spatial Technology’s
plan for an IPO of common
stock at the end of 1992 was withdrawn.
J. Describe the IPO market conditions in 1996 and
discuss possible reasons why
the proposed IPO at a price of about $10 per share
planned for October 1996
and involving Dain Bosworth as lead underwriter failed.
K. Evaluate the compound return on investments made
at startup, Round A,
Round B, Round C, and Round D if the acquired shares
eventually sell at $10
and $5. Evaluate the compound return on all
investments of each existing investor. Analyze the
incentives of each investor and founder for taking the
Cruttenden Roth offer to execute a $5 IPO.
L. Using the provided financial statements as a starting
point:
1. Prepare and present a discounted cash flow
valuation and pro forma financials
with five years of explicit forecasts using license fees
and royalties growth rates
consistent with recent history (e.g., two to three years)
at Spatial.
2. Modify your analysis to consider a more successful
scenario where Spatial’s
main revenue sources (combined) grow at 50 percent
for five years and then
flatten to a more sustainable growth rate.
3. Prepare and present discounted cash flow valuations
and pro forma financial
statements (five-year explicit period) that justify a $10
share price and a
$5 share price at the IPO. Make sure the ratios
embedded in your projections
conform to reasonable operating ratio assumptions.
4. In all cases, be sure to explain your modeling
assumptions on revenue and
costs and provide a summary comparison of the four
scenarios.
M. Discuss the $5 and $10 IPO prices for Spatial within
the context of comparable
firms and their multiples. (There are some glimpses of
multiples in the case materials, but you may wish to
use some outside historical reference material.
Please state your sources.)
N. Prepare an executive summary discussing the events
and decisions (technological
and financial) leading to its situation, the options it
had, and your recommendations for Spatial’s future.
Would (could) you have done anything differently?
O. Take a position on whether you would recommend
the $5 IPO. Take a position
on whether, as an investor, you would have purchased
shares in the $5 IPO.
P. Discuss what you believe would have been the
strategic outlook for Spatial
(product lines, licensing, competitors, etc.) at the time
and what you believe
would have been the financial market’s view of a
publicly traded Spatial
Technology.