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Pages:
8 pages/≈2200 words
Sources:
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Level:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 37.44
Topic:

Case: H.J. Heinz M&A (KEL848) Accounting, Finance, SPSS Case Study (Case Study Sample)

Instructions:

This is an Investment Banking Case study. The main requirements is in the Project requirement PPT. There are two projects in it, but we are only doing the individual Case write up. Basically, there are two part, the model analysis and the actual case writing. I have also attached the excel that will be needed for Model Analysis. As well, the actual case will be attached with the project. No plagarism for sure, and everything will need to go through Turnitin, any use of sources must be cited.
Hi, these are the problems that must be addressed in the case study paper. basically, all the answers toward these problems should be included.

 

In the paper, students are expected to address the following questions:

 

1.Discuss the positions of various stakeholders (Heinz’s shareholders, Heinz’s management, 3G/Berkshire Hathaway) and why the transaction may make sense to each of them.
2.Conduct valuation of Heinz’s shares and state your conclusion after considering (A) the 3 valuation methodologies and (B) improvements, synergies and future strategic options.
3.Determine and recommend (A) Opening bid-price and (B) Walk-away price for both the acquirers (3G and Berkshire Hathaway) and for Heinz. (Hint: your prices do not have to be consistent with the $72.5 per share offered in the case).
4.Do you agree with the Case that there is estimated ZERO synergy because Heinz will operate as an independent company? Why and why not?
5.What are the principal risks and benefits of the Heinz acquisition to 3G and Berkshire Hathaway?
6.3G and Berkshire Hathaway plans to have an all-cash transaction. Discuss the possible financing alternatives available to the acquirers and the pros and cons of each alternative.

Individual Case Report

Case:  H.J. Heinz M&A (KEL848)

Key success factors for the assignment

 

1.Use the 4-step valuation methodology (to be discussed in Class 4)
2.Clearly show assumptions and calculation methodologies clearly and the reasoning behind them.
3.Cover all questions required in the page 5 of this slide.
4.Clear conclusions and recommendations.
5.Be reader-friendly and easy to understand.
6.Effective use of tables and charts to support your message.

 

source..
Content:


Title
Your Name
Subject and Section
Professor’s Name
Heinz has been very successful in the retail food industry, particularly in the production of sauces and condiments. It is a multinational food producer and has always been competitive in the global marketplace. It has established its name in the production of pre-packed branded foods. On the other hand, 3G Capital is a multinational, which focuses on the long-term value of brands and businesses, particularly on emphasizing their potentials. It has been known globally for a long time due to its operational excellence, management involvement, expertise, and extensive global network.
Meanwhile, Berkshire Hathaway ranked third on the list of largest public companies in the world, according to Forbes Global 2000. It was also on the tenth place on the list of largest conglomerates based on revenue and was proclaimed to be the most significant financial services company in the whole world. These companies are well known, and it is no doubt that their merger will bring them more profits and success in the future.
In 2013, 3G Capital and Berkshire Hathaway offered Heinz that they would acquire 100% of the shares of the latter. After various negotiations, the offer was accepted, and the merger transpired. For the offer to be accepted, many factors were considered, especially the selling price of the shares. Upon comparison of the price offered by 3G Capital and Berkshire Hathaway with the closing price of the shares on the day before the day of the sale, it was proven that it was a lot higher.

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