Since the COVID-19 situation has skyrocketed the number of individuals who participate in online learning, it only makes sense that companies are making moves to normalize virtual learning to make knowledge accessible to anyone who has a computer and an internet connection. Learnt Corporation is a new startup learn @ing platform that was started this 2020. The company has approached your boss with an offering memorandum looking for major investors to help fund their operations. Your employer wants to know if the deal being offered is a good or bad one. Go through the data to make your conclusion about the deal, then use the data you have gathered in the pdf to support your answer.Please provide a PowerPoint presentation to summarize your report.
Some criteria you can include in your findings are the following:
- Payback Period – How long is the Payback Period of Learnt? What is your projected timetable for them to break even?
- IRR – How profitable do you think Learnt will be in the long term? Will they be profitable for your employer should he/she decides to invest in the company?
- What does Learnt’s capital structure look like? Is it a reasonable split between debt and equity?
- Does Learnt have a realistic forecast with their numbers? Consider their management style as well as current trends with economy and business. Justify your answers.
- How is Learnt’s debt position? How long do you expect Learnt to be in debt before they start making positive returns?
Others:
- Risks Could regulatory or legal issues pop up? Is tutoring the right service for today’s situation? How about 10 years from today? Is there an eventual exit from the investment and a chance to see a return? If so, is it a safe process?
- Management background: Is the management of Andrew and Eliza Nimmich reliable? Do they prioritize long-term growth with Learnt? What has the management done with Learnt and their previous work experience that makes you think so?
- SWOT Analysis
- Market Size (TAM – Total Addressable Market) How large is the addressable market for the deal at hand? Is there a chance of sustainable growth within the company?
- Porter’s Five Forces Analysis. Identify Learnt’s main competitors and their possible dynamic with the company, as well.
- Corporate Governance
