They are just going alone! (Applause)

Malibu Equity and Investments.

Malibu Equity and Investments. Roger Van Zant.

They're valuing these assets at 1 million.

As investors flee

And rich, eh?

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

Yes, it's an enterprise.

And I'll show you why that matters in a second.

Big investors.

An investors' group is attempting a leveraged buy out of the firm.

Just Manic Enough.

CA What's the bottleneck preventing this stuff getting from scale?

He valued what we already had at 5 million dollars.

He is a man of wealth.

He's a wealthy man.

But he said you know Nempo...

The government should invest more money in industry.

So you can imagine, this is the actual amount of cash that

This is the total actual value.

Mmhm. It's a real estate investment.

Are you a man of means?

Good morning.

By the way before we go forward, this is one point I want to mention.

The leisure industry is sinking more money into new resorts.

(Laughter)

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

So going back to what we were talking about, what is the post money valuation?

On the equity side of the equation we just have four million shares.

If there are investors willing to finance

And we start getting to the negotiation.

So this is my slice down here, 200,000.

So let's say he convinces investor B to join in.

I think it was at 7.50 a share.

And we allow entrepreneurs to share a percentage of their revenues.

And of that share, we have 2 million shares outstanding.

It's worth 5 million.

EBlT in this case would be the operating profit plus this investment income.

Capital intensive industries are not necessarily knowledge intensive industries.

Or are you trying to get an intuition for helping to become a better investor?

So essentially, instead of Countrywide being responsible for my loan, my payments now go to these investors.

And, but it really it got the electricity. It took a long time.

He had originally given us 5 million.

But now we actually built something.

What's it like being an investment banker?