Case 14.2 Textbook: Entrepreneurship: Successfully Launching New Ventures. 6th ed. (2019) By Bruce R. Barringer and R. Duane Ireland 1. Why do you think Hormel acquired Justin’s to add to the strength of its peanut and nut butter offerings and to add a product to its portfolio that appealed to a younger, more health-conscious consumer rather than creating a similar product from scratch in its own R&D labs? 2. Why do you think Justin’s didn’t try to raise additional funds to acquire more resources to manage its growth rather than selling itself to Hormel? 3. If you had been a loyal Justin’s customer when the Hormel acquisition was announced, would you have reacted adversely to the acquisition? Why or why not? 4. What is a liquidity event? Why do firms that take money from investors strive to find a liquidity event within a 5-7-year time frame? In your judgment, did Justin’s have a favorable exit (or liquidity event)?
