Answer to Question #255169 in Management for hajji

Question

What was the reason for an all-cash transaction, and what are the disadvantages of this form of consideration (as opposed to using common shares as consideration)? What are the principal risks and benefits of this transaction for 3G and Berkshire Hathaway?

Answer 1

An all-cash transaction is a form of a transaction conducted without the use of non-cash or debt methods. The seller chooses this method because of its efficiency and to avoid confidential uncertainties with the buyer. The drawback of this method is that the shareholders will be on the disadvantaged side to pay for possible capital taxes. The advantage of the transaction is the selling shareholders; they take many risks alone. This method is quick and involves no uncertainties for 3G and Berkshire Hathaway