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 In Bev, do you think that In Bev made a fair offer for Budweiser? What did they actually get for their money? In your discussion, consider whether you think that In Bev 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 In Bev article about the tangible assets in play, but Simon and Sullivan’s Measured Brand Equity for Food Product Companies 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.
For additional details, please refer to the Short Paper/Case Study Rubric PDF document.
