1) explain the strategic rationale behind a strategic corporate transaction; Lovepop is in the pre-seed capital financing cycle stage: it has not yet reached the break-even point and still it is trying to find a product-market fit. FFF (fools, family and friends) and a very expensive loan are its main sources of financing. Lovepop has an innovative product but needs capital to scale, improve distribution systems and establish their business model. Lovepop needs both financial resources and guidance. Their actual financial situation does not allow either to manage their debts or any further development of the business. Additionally, the time frame during which the company must find new financial resource is an important constrain. (2) identify, collect, analyse and distil information from multiple sources to make relevant and appropriate business decisions in relation to a strategic corporate transaction; It has been analised that their target customers are very segmented: culturally, demographically, and geographically. Considering that Lovepop products are very innovative and their target customers are very segmented, a high-end channel, such as kiosks would be more appropriate than a wholesaler distribution. This strategy will guarantee not only a higher profit compared to the wholesaler channels but also it will allow to better manage the resistance to innovation, which is strong in a mass market distribution. Market research has demonstrated that consumers’ demand is looking for a broader range of products. Another evidence to justify a margin rather than a volume strategy. After having analysed the performance of each sales channels (online, Kiosk, Etsy and Grommet) Lovepop investment plan aims to increase the number of kiosks. At the moment Lovepop kiosk yearly revenue is 408k (34k monthly). A purchase of 7 kiosks would potentially increase the yearly revenue to $2.856.000, in the face of an investment of $140.000 (ROI = 20,4). Operating expense are expected to increase as they will expand their staff. (3) determine and apply strategically relevant and appropriate theories and frameworks for a given practical strategic corporate transaction; and Both Founder and Techstars have pros and cons. In the table below are summarised the main differences: Techstar - Accellerator PROS Provide 2 years of business in few months High exit rate High exposure to many investors to raise money: 300k even before the start of the program High survival rate Potential to be part of Shank Tank programme for further visibility PROS Higher principal amount Higher conversion trigger No diluted shares CONS Stocks will be diluted Lowest conversion trigger Lowest principal amount Founder.org - Incubator CONS 1-year long mentorship program Exclusivity (4) identify and effectively communicate the most appropriate corporate financial course of action for a range of strategic corporate transaction scenarios. Considering the Lovepop financing cycle stage and the consequent needs, the criteria that are relevant to choose the better option to finance the company are: Time to push the business Investors visibility No shares dilution Quality of mentorship program Principal amount available In order to make the decision, it is possible to use the Multi Attributed Value Score (MAVS) where 0 represents the worst (least preferred) and 100 the best (the most preferred) score on an attribute. Criteria weight Time Investor visibility No share dilution Quality of mentorship Principal amount available Tot 70 70 30 50 60 280 Weight in preference score 0,25 0,25 0,11 0,18 0,21 No Quality of Principal Investors shares mentorship amount Time visibility dilution program available Techstars 100 100 60 80 70 Founder.org 30 60 100 80 100 Techstars = 100 (0,25) +100 (0,25) + 60 (0,11) +80 (0,18) + 70 (0,21) = 85,70 Founder.org = 30 (0,25) + 60 (0,25) +100 (0,11) + 80 (0,18) + 100 (0,21) = 68,9 Based on the criteria selected, Techstars financing option will be the best choice. Although the principal amount available to Lovepop is less than the one offered from Founder.org, they have promised to help Lovepop close a seed round of $300.000 before the accelerator program even started. Having also the opportunity to join the Shark Tank program, is very important because even if rejected, the granted airtime would boost the sales.