Anheuser-Busch InBev merger
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Please write a paper in APA style, no plagiarism, provide references and citation. It is necessary to use this link (all data there) https://www.sec.gov/Archives/edgar/data/310569/000095013708013472/c47434e10vq.htm
Use this information to assess the amount In-Bev paid for the brands owned by AB. Going back to the article and discussion about Budweiser and InBev, do you think that InBev made a fair offer for Budweiser? What did they actually get for their money? In your discussion, consider whether you think that InBev paid a 35% premium for the brand, more than 35% or less than 35%. Does the 35% number seem fair and accurate to you, or high or low? On what are you basing your thinking?
Write a short paper that answers these questions. Cite all sources.
There is no significant discussion in the InBev article about the tangible assets in play, but Simon and Sullivan's Measured Brand Equity for Food Product Companies (an alternative to Interbrand's valuation method) estimates that AB's brand equity is approximately 35% of the replacement value. That means that should a company need to introduce a new brand to replace the old, its value would diminish by 35%, which is the value of the brand equity. See what you can find about Anheuser-Busch's balance sheet at the time of the buyout.
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This posting gives you a step-by-step explanation of Anheuser-Busch valuation discussion. The response also contains the sources used.
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In accordance with BrainMass standards this is not a hand in ready paper but is only background help.
Step 1
On June 12, 2008, InBev announced that it made a $46 billion offer for Anheuser-Busch. On July 13, 2008, Anheuser-Busch announced that it had agreed to an acquisition by InBev at $52 billion in cash. The conditions included the stipulation that InBev will change its name to Anheuser-Busch InBev and Anheuser-Busch will have two seats on the board of directors.
InBev did not make a fair offer to Anheuser-Busch but the offer was overgenerous. Also, increasing the amount to $52 billion in cash was unfair to the shareholders of InBev (a).
Step 2
The rationale is that Anheuser-Busch Companies Inc and Subsidiaries Consolidated Balance Sheet for the year ended September 30th 2008 shows ...
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