These are the questions to be answered.The screenshot is the case study needed to answer the questions.*NOTE* There are more screenshots TO DO: 1. Evaluate Ecoturista’s business model. What is the...

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These are the questions to be answered.The screenshot is the case study needed to answer the questions.*NOTE* There are more screenshots
TO DO:
1. Evaluate Ecoturista’s business model. What is the opportunity? Whatare the potential threats to the business? What are the strengths andweaknesses of the proposal?
2. Is this likely to be a capital-intensive business?
3. Do the company’s growth projections seem realistic? What is Ecoturista’s cost structure likely to look like? Are the company’s costs mainly fixed or variable or balanced between the two?
4. Does their profit margin forecast seem reasonable?
5. Assume a multiple of five times earnings is appropriate in this industry. What is the post-money valuation for Ecoturista? What share of the company must they give up for the desired investment? Does the company seem fundable?
6. Are there or could there be milestones associated with the secondround of funding? What might such a milestone be?
Answered Same DayFeb 19, 2021

Answer To: These are the questions to be answered.The screenshot is the case study needed to answer the...

Tanmoy answered on Feb 20 2021
143 Votes
Finance » Corporate Finance
1. Evaluate Ecoturista’s business model. What is the opportunity? What are the potential threats to the business? What are the strengths and weaknesses of the proposal?
T
he business model that will be used by Ecoturista will be identifying and contacting with the reliable and trustworthy travel agencies in America. Thus it will be a B2B model which will be used as a scalable and moveable travel network model. The opportunities are delivering the customers with high quality, exceptional and idiosyncratic travel experience. It will also provide adventure and cultural travel throughout America. Finally, it will be providing utmost respect to the ecology and the people in the region of its operations.
The threats of the business are that there is no existence of a dedicated linked e-commerce online adventure travel platform in Latin America. As a result of these the brick and mortar travel businesses in America lags in technology and offerings as per the demand of the customers.
The strengths of the business is that the Latin American population is the largest and the fastest growing population with the online travel is predicted to be the second largest e-commerce category by 2025 in the region.
The weakness of the business proposal is lack of dedicated technology based e-commerce travel agency and reservation system which exists for the adventure travel in Latin America. Due to this issue, it will be difficult for the company to judge its performance.
2. Is this likely to be a capital-intensive business?
Capital intensive businesses are those businesses which requires large amount of capital and investment for its operations. But, the travel agency business can be started at a low cost and does not require huge capital investment. This will be an online travel agency business which will require an online portal and will help to do bookings, make payment and commission transactions. Thus the cost of expenses will be too less....
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