1. Explain Eco-Products 'supply chain model that existed in early 2008. Describe the strengths and weaknesses of such a model from an operations viewpoint. What are the implications of this supply chain model on Eco-Products working capital financing needs and its cash conversion cycle? K. In mid-2008, Eco-Products management sought to quickly (hopefully) raise an additional $2 million in external financing through a single private equity investment. The term sheet prepared by Greenmont Capital is presented in Appendix B. 1. After considering a number of possible private equity investors, Greenmont Capital was selected by Eco- Products ' management. Discuss the pros and cons of selecting a small locally-based private equity firm relative to a larger private equity investor? 2. Review the investment terms presented in Appendix B and comment on any factors in the term sheet that might be "deal breakers." If you were representing Eco-Products top management, which terms might you want deleted or modified from the term sheet? Now, if you were representing Greenmont Capital, which terms would be important in protecting its investment capital? 3. Some analysts employ a relative value method that uses multiples from comparable firms to estimate the value of a target venture. Exhibit 9 contains enterprise value-to- sales information for a number of possible comparable firms for the purpose of valuing Eco-Products. Estimate the enterprise value of Eco-Products. What portion of equity ownership should Eco- Products be willing to give up for the $2 million Greenmont Capital investment? 1. Explain Eco-Products 'supply chain model that existed in early 2008. Describe the strengths and weaknesses of such a model from an operations viewpoint. What are the implications of this supply chain model on Eco-Products working capital financing needs and its cash conversion cycle? K. In mid-2008, Eco-Products management sought to quickly (hopefully) raise an additional $2 million in external financing through a single private equity investment. The term sheet prepared by Greenmont Capital is presented in Appendix B. 1. After considering a number of possible private equity investors, Greenmont Capital was selected by Eco- Products ' management. Discuss the pros and cons of selecting a small locally-based private equity firm relative to a larger private equity investor? 2. Review the investment terms presented in Appendix B and comment on any factors in the term sheet that might be "deal breakers." If you were representing Eco-Products top management, which terms might you want deleted or modified from the term sheet? Now, if you were representing Greenmont Capital, which terms would be important in protecting its investment capital? 3. Some analysts employ a relative value method that uses multiples from comparable firms to estimate the value of a target venture. Exhibit 9 contains enterprise value-to- sales information for a number of possible comparable firms for the purpose of valuing Eco-Products. Estimate the enterprise value of Eco-Products. What portion of equity ownership should Eco- Products be willing to give up for the $2 million Greenmont Capital investment