1. What criteria should Heinz use to select its investment bankers? What services may Heinz need from them in support of this transaction?
2. The bidders (Heinz and Berkshire Hattaway) selected three banks with very different profiles: J P Morgan Chase (a large banking conglomerate), Wells Fargo (a commercial and corporate bank) and Lazard (a pure-player advisory investment bank). Why? Are these banks complementary? Which areas of the transaction could each one of them specialise on?
3. What was the role played by shareholder activist Nelson Peltz in triggering this transaction? How may investment banks help the management of companies such as Heinz against this activists?
4. What is the logic of the "go shop" process described in the case? How may / should investment banks help in such process?
5. Present your valuation of Heinz as a standalone company.
6. Discuss the form of payment used (cash). Would a strategic (i.e. nonfinancial) buyer pay 100% cash? Is the role of investment banks involved different in all-cash and all-stock transactions?
7. As an investment bank advising Heinz's board of directors would you consider the offer made by the buying group fair for the company's shareholders? Add any additional calculations and comparisons you may need.
Format: typical investment bank report