Review the H. J. Heinz M&A case and provide a written answer to the following questions.

1 Interests and strategies

1. 1. Describe the activities of Nelson Peltz and the role he played in laying the groundwork for the acquisition by Berkshire Hathaway and 3G.

   2. Discuss the positions of various stakeholders including Heinz shareholders, management, employees and citizens of Pittsburgh.

   3. Discuss the go-shop process, explain why it may be necessary and list any potential risks of such a process.

   4. Why are investment bankers involved in this transaction and what are their respective roles?

2 Valuation: Do you agree that the acquirers offer was fair from a financial perspective?

1. What is Heinz worth? Provide a valuation using different valuation methods including discounted cash flows, comparable companies and comparable transactions. First and for each valuation method, start with a baseline valuation and make sure to clearly explain all data sources from the case, assumptions and calculations. Second, provide alternative valuation scenarios. Finally, compare the different values that you calculated and draw conclusions about the fairness of the deal.

2. What was the acquisition premium and what do you conclude from it regarding the fairness of the deal?

3. What was the market reaction to the acquisition announcement and what do you conclude from it regarding the fairness of the deal?

3 Overall assessment: Was it a fair deal for all stakeholders?