- Consider some changes and sensitivity analysis. What changes, if any, would you suggest as an outside investor to its business model? What are the risks? What are the implications of these changes? Here this may involve qualitative aspects and “what would you want to know” from an inside the firm perspective.
- Based on what you recommend for a business model ($ spent on customer acquisition/marketing and other key variables), come up with a value for Spotify—IPO (your value would be post-money if the IPO money is necessary to grow the business) to guide your IPO decision. Use a discount rate of 20% (late stage venture/ IPO tech SaaS company). Consider a range of exit multiples after 3-5 years (15/20/25 times EBITDA).
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