Regarding a 20% acquisition premium of Heinz acquisition by Berkshire Hathaway and 3G in 2013, how can we determine whether or not this premium is reasonable (or what kinds of criteria we should use to determin it )? The four ways listed below are what I think can be used to answer the questions. 1. Compare to historical acquisition premium one year ago. (25%) 2. Consider a median announced synergies as a percentage of target sales of the food industry.(Compare to the other industries) 3. Use a comparable transaction metrics which exhibit Ent Value/LTM EBITDA ratio. Compute the mean and use it to yield the stock price to compare to the offered price. 4. Consider the quality of the acquires