1. Why do you think Hormel acquired Justin’s to add to the strength of its peanut and nut butter offerings and to add a product to its portfolio that appealed to a younger, more health-conscious consumer rather than creating a similar product from scratch in its own R&D labs?

2. Why do you think Justin’s didn’t try to raise additional funds to acquire more resources to manage its growth rather than selling itself to Hormel?

3. If you had been a loyal Justin’s customer when the Hormel acquisition was announced, would you have reacted adversely to the acquisition? Why or why not?

4. What is a liquidity event? Why do firms that take money from investors strive to find a liquidity event within a 5-7-year time frame? In your judgment, did Justin’s have a favorable exit (or liquidity event)? Explain your answer.