Boston Beer Co. Case Assignment

This case requires applying standard valuation techniques in the evaluation of an IPO offer price. Your

group must provide a short PowerPoint presentation which includes the results of your analysis

evaluating the suggested initial offering price set by the investment bankers of $12.50 per share. Submit

your completed PowerPoint presentation and Excel workbook in the digital dropbox. Do not restate the

basic case facts the presentation; just summarize your analysis and conclusions.

You must address the following questions and provide the following analysis.

Part 1. Address the following issues regarding the IPO.

Briefly explain reasons that Boston Beer Co. specifically may benefit from an IPO at this time.

What does Boston Beer Co. plan to do with the proceeds of the IPO?

What fraction of the shares will be owned by the public following the offering?

If the IPO is underpriced by a typical amount, how much will Boston Beer Co.