Complexity

Research Article

Exit Decision of Venture Capital Based on Linear Contract in Continuous Time: IPO or M&A

Table 2

Numerical simulation for exit decision.


	0.01	0.02	0.03	0.04	0.05	0.06	0.07	0.08	0.09	0.10

	85.70	44.80	31.20	24.40	20.30	17.60	15.70	14.30	13.20	12.30
	74.91	35.38	22.25	15.72	11.84	9.28	7.47	6.12	5.10	4.29
	78.90	29.20	13.00	5.10	1.00	1.00	1.00	1.00	1.00	1.00
	44.96	27.53	22.46	20.57	20.01	19.81	19.61	19.42	19.22	19.03
Overall decision	IPO	IPO	M&A	M&A	M&A	M&A	M&A	M&A	M&A	M&A
	95.30	51.00	36.20	28.90	24.50	21.60	19.60	18.00	16.80	15.90
	47.82	22.04	13.53	9.33	6.86	5.24	4.12	3.30	2.68	2.20
	64.40	13.10	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
	29.00	20.92	19.95	19.75	19.55	19.36	19.16	18.97	18.78	18.60
VC’s decision	IPO	IPO	M&A	M&A	M&A	M&A	M&A	M&A	M&A	M&A

	74.40	37.70	25.40	19.30	15.60	13.20	11.50	10.10	9.10	8.30
	278.69	136.98	89.76	66.16	52.01	42.58	35.85	30.81	26.90	23.77
	82.80	39.80	25.40	18.20	13.90	11.10	9.10	7.50	6.40	5.40
	197.33	103.10	71.80	56.22	46.93	40.80	36.46	33.25	30.79	28.86
Overall decision	IPO	IPO	IPO	IPO	IPO	IPO	M&A	M&A	M&A	M&A
	80.20	40.80	27.60	21.10	17.10	14.50	12.60	11.20	10.10	9.30
	213.66	104.60	68.27	50.12	39.24	32.00	26.83	22.97	19.96	17.57
	87.10	40.60	25.10	17.30	12.70	9.70	7.50	5.90	4.60	3.60
	125.15	66.89	47.64	38.16	32.58	28.97	26.47	24.69	23.37	22.39
VC’s decision	IPO	IPO	IPO	IPO	IPO	IPO	IPO	M&A	M&A	M&A

	71.40	35.90	24.10	18.20	14.60	12.30	10.60	9.30	8.30	7.50
	586.88	291.00	192.38	143.07	113.49	93.78	79.70	69.14	60.93	54.36
	77.50	38.20	25.10	18.50	14.60	12.00	10.10	8.70	7.60	6.70
	487.03	248.15	168.56	128.79	104.95	89.08	77.75	69.28	62.70	57.44
Overall decision	IPO	IPO	IPO	IPO	IPO	IPO	IPO	M&A	M&A	M&A
	75.30	37.90	25.50	19.20	15.50	13.00	11.20	9.90	8.90	8.00
	496.11	245.71	162.25	120.52	95.50	78.81	66.90	57.97	51.03	45.48
	83.40	40.70	26.50	19.40	15.20	12.30	10.30	8.80	7.60	6.70
	336.48	172.62	118.06	90.82	74.52	63.67	55.95	50.19	45.72	42.17
VC’s decision	IPO	IPO	IPO	IPO	IPO	IPO	IPO	IPO	IPO	IPO

	70.30	35.30	23.60	17.80	14.30	11.90	10.30	9.00	8.00	7.30
	992.91	493.98	327.68	244.53	194.64	161.38	137.63	119.82	105.97	94.88
	74.10	36.80	24.30	18.10	14.30	11.90	10.10	8.70	7.70	6.90
	897.63	453.59	305.60	231.62	187.24	157.67	136.55	120.72	108.41	98.57
Overall decision	IPO	IPO	IPO	IPO	IPO	IPO	IPO	M&A	M&A	M&A
	73.10	36.70	24.60	18.50	14.90	12.40	10.70	9.40	8.40	7.60
	886.77	440.98	292.39	218.10	173.52	143.81	122.59	106.68	94.30	84.40
	79.70	39.40	26.00	19.30	15.20	12.50	10.60	9.20	8.10	7.20
	670.11	339.58	229.43	174.38	141.36	119.37	103.67	91.90	82.76	75.46
VC’s decision	IPO	IPO	IPO	IPO	IPO	IPO	IPO	IPO	IPO	IPO