Describe the acquisition process of Heinz Kraft company How the combination was structured (statutory merger, acquisition, or
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- Describe the acquisition process of Heinz Kraft company
- How the combination was structured (statutory merger, acquisition, or statutory consolidation?).
- Did tax consideration influence how the combination was structured?
- How would you classify the business combination: horizontal combination, vertical combination, or conglomerate combination?
- Did the federal government have to approve the proposed combination on anti-trust grounds?
- Was there a tender offer?
- What was the size of the purchase price premium, in dollars per share and percentage increase over market price of the target’s stock price?
- How long did it take to complete the business combination, from the date of the S-4 and the completion date?
- Valuation of Heinz Kraft company
- What is the amount of exchange ratio?
- What valuation methods were used to determine the purchase price?
- What valuation method was used to value the target company? If the discounted cash flow (DCF) method was used to value the business combination, what amount was assigned to terminal value?
- If DCF analysis was used, what was the length of forecast period? What were the years?
- Valuation of synergies.
- What was the estimated stand-alone value of the target company?
- What was the estimated stand-alone value plus expected synergies resulting from cost savings and revenue increases.
- What discount rate was used to calculate the present value of future cash flows?
- Who prepared the valuation and fairness opinion letter(s)?
- What did the fairness opinion letter(s) say about the proposed combination, exchange ratio, and the asking price?
Related Book For
Survey Of Accounting
ISBN: 9781260575293
6th Edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds
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