Mercury athletic dcf analysis discounted cash flow analysis. Mercury athletic valuing the opportunity when students have the englishlanguage pdf of this brief case in a course pack, they will also have the option to purchase an audio version. Australian school of business school of banking and finance. Mercury athletic footwear case solution,mercury athletic footwear case analysis, mercury athletic footwear case study solution, question 1 if we look at. When students have the englishlanguage pdf of this brief case in a coursepack, they will also have the option to purchase an audio version. John liedtke, head of the business development for active gear, inc saw it has a possible opportunity for them to acquire it.
Athletic footwear refers to those shoes that are designed for sports and other outdoor activities. Particularly, there was potential for growth in agis casual footwear sector. Mercury athletic footwear ensayos y trabajos tatayo189. Sep 10, 2017 the plan called for a divestiture of certain noncore assets and a renewed focus on wcfs higherend business, businesscasual, and formalwear apparel businesses.
The objective of this course is to develop the intuition and tools to value companies and their securities. Executive summary great pressure from suppliers and competitors caused some deterioration of basic performance for agi during 20042006. Start writing about mercury athletic footwear with our best example essay. Jul 22, 20 mercury athletics analysis download here. John liedtke, the head of business development for active gear, a midsized athletic and casual footwear company, saw the potential acquisition of mercury as a unique opportunity to roughly double the size of his business. West coast fashions, inc a large business of mens and womens apparel decided todispose of one of their segments.
Students may also pick up to three of the remaining cases excluding the mercury athletic footwear case and submit reports for them. Graded wk4 mercury footwear fin 6311 valuation ut dallas. Valuing the opportunity case analysis, mercury athletic. Hill country snack foods hcsf with soluion free download as pdf file. Agi is a privately held footwear company and is contemplating the possibility of acquiring mercury athletic footwear. Valuing the opportunity terran knox measurements ii mba634 northwood university devos program dr. These reports are optional, but can count for up to 7. Estimation the value of mercury based on discounted cash flows and liedtkes base case projections. Valuing the opportunity harvard business school case 4050, timothy a. Synergy, the increase in value that is generated by combining two entities to create a new and more valuable entity, is the magic ingredient that allows acquirers to pay billions of dollars in premiums in acquisitions. Mercury athletic footwear case dcf valuation analysis jianqiu. Mercury athletic footwear case dcf valuation analysis jianqiu huang 114833532 bochao liang 115002548 jie xu. Mercury athletic footwear case mercury athletic footwear. Get your custom essay on mercury athletic footwear.
Environmental education resources to commemorate earth days 50th anniversary. Mercury athletic footwear by dylan marschall on prezi. View mercury athletic footwear case from bufn 750 at university of maryland, college park. Valuing the opportunity case solution,mercury athletic footwear. Mercury athletic footwear case essay 1268 words cram. The case uses the potential acquisition of mercury athletic as a vehicle to teach. Excel solution to a mercury athletic case analysis. Mergers and acquisitions edinburgh business school ix preface an understanding of mergers and acquisitions as a discipline is increasingly important in modern business.
Written component mercury athletic historical income. Liedtke knew that acquiring mercury would roughly double active gears revenue, increase its. Founded in 1968 by daniel fiore producer, designer and distributor of branded athletic and. Wcf, a large designer and marketer of mens and womens branded apparel had recently announced plans for a strategic reorganization. Mercury athletic footwear case solution and analysis, hbr. Estimation of the weighted average cost of capital 5 b. Essay about mercury athletic footwear case 1280 words.
The industry is same, products are similar, markets are similar, greater ability to merge each others operating efficiencies and improve deficiencies, therefore it is evident that these factors confirm that mercury is the best target for acquisition. John liedtke, the head of business development for active gear, a midsized athletic and casual footwear company, saw the potential acquisition of mercury as a unique. Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. Goldman sachs case competition 1st place 2015 by bruin. Yet, the global consumption volume indicates a trend of these being used as casual and fashion footwear by people of. Mercury features the most experienced leadership and operating management of anyone in the footwear sourcing business. Mercury athletic valuing the opportunity casejungle.
Valuing the opportunity case study solution, when pupils have the english language pdf of this brief case in a coursepack, they are going to moreover have the option to obtain an audio version. Valuing the opportunity the case centre, for educators. Remote work advice from the largest allremote company. One of solution is to acquire mercury athletic, which a division of west coast fashions, inc. In order to summarize, due to agis small size, there is a strong risk of being overtaken by the other giant players in the market therefore, if it acquires mercury, the risk will be minimized and there is a strong opportunity that the company will grow steadily.
Your data will be completely private, secure and will not be posted to your facebook wall or tweeted. When students have the englishlanguage pdf of this brief case in a coursepack. Mercury athletic footwear case solution, mercury athletic footwear case analysis, mercury athletic footwear case study solution, question 1 if we look at the valuation of mercury for the part d and part f, then a difference could be seen between the enterprise values. Mercury athletic footwear case study assignment help center. Mercury athletic footwear discounted cash flow discounting. The strategic merits of acquiring mercury from liedtkes perspective. Mercury athletic footwear acquisition analysis active gear cost of capital assumption tax rate cost of debt risk free rate expected market return market risk premium asset. Harvard business school case study completed for my intro to finance. Valuing the opportunity complete valuation of a potential acquisition of mercury athletic footwear by active gear. May 06, 2016 acquisition benefits and concerns 1 larger size can better compete with rival firms 2 prime position to renegotiate manufacturing contracts 3 broaden customer base 4 expansion of customer demographic 5 inventory management system easily integrated with mercurys products 6 high operating margins of mens athletic line for mercury 7. Example of mercury athletic footwear case case study wow. Reasons why mercury is an appropriate target for agi 4 2. Standard course outline fin 470 seminar in financial. Mercury athletic footwear valuing the opportunity essay.
When students have the englishlanguage pdf of this brief case in a. Buy books, tools, case studies, and articles on leadership, strategy, innovation, and. West coast fashions, inc a large business of mens and womens apparel decided to dispose of one of their segments. We bring this fact up because it means youre partnering with experts who have seen it all, done it all and solved it all. Hill country snack foods hcsf with soluion kamran shabbir mba szabist ks creativity. Agi is contemplating whether to invest in mercury athletic a subsidiary of west coast fashions wcf. You can do business case study analysis by following fern fort. Mercury financial valuation case 2183 words 9 pages.
We believe mercury athletic footwear is an appropriate mark for agi to accomplish such a end for following grounds. Find out more about mercury athletic footwear case solution excel. Mercury athletic slides free download as powerpoint presentation. The strategic merit is that both companies mercury and agi, are footwear companies that attract the youth market. Mercury athletic footwear valuing the opportunity author case analysis mercury athletic footwear table of contents 1. Joel l heilprin in january 2007, west coast fashions, inc.
Mercury athletic footwear case solution free essays. Valuing the opportunity case solution, mercury athletic. Valuing the opportunity case analysis, mercury athletic footwear. Adam guerrero 4 march, 2015 problem statement mercury athletic is the footwear division of west coast fashions wcf, a designer and marketer of mens and womens apparel.
Read free case studies on mercury athletic footwear case and other. Mercury athletic footwear acquisition net present value of mercury athletic enterprise the results of my financial analysis based on the free cash flow method considering the base case of financial projections and assumptions for mercury athletic footwear collated and developed by john liedtke indicate that that. Executive summary the footwear industry is highly competitive industry with fairly stable profit margins. In january 2007, west coast mercury athletic footwear. Mercury was purchased by wcf in hopes to increase business revenue however this was not the case. Valuing the opportunity in march 2007, john liedtke, the head of business development for active gear, inc. Mercury potential to double revenues increase leverage with manufacturers increase long run growth rate expand presence with key retailers and distributors. Valuing the opportunity team 10 mergers and acquisitions west coast fashions, inc wcf was a large business, which dealt with mens and womens apparel. Mercury athletic footwear, inc valuing the opportunity.
Jul 11, 2017 the aim of the acquisition is to better house size. Mercury athletic footwear case study essay 780 words 4 pages. You can do business case study analysis by following fern fort university step by step instructions. In his preliminary valuation and analysis, liedtke came up with a. Ice point solutions darren tan darryl tan fangfei li will wolf. The case centre is a notforprofit company limited by guarantee, registered in. Mercury athletic footwear case solution and analysis, hbs. One of their segments was mercury athletic footwear.
The case uses the potential sale of mercury athletic footwear hereafter, maf, a midsize athletic and casual shoe company, to teach undergraduate and the firstyear mba students the basic discounted cash flow valuation using the wacc. It is helpful for students to have previously studied a simple case on dcfbased project valuation and a. Encompassing both active gear and mercury athletic footwear. Mercury athletic footwear case solution and analysis, hbr case. The industry is same, products are similar, markets are similar, greater ability to merge each others operating efficiencies and improve deficiencies, therefore it is evident that these factors confirm that mercury is. Valuing the opportunity case solution,mercury athletic. The perfect fit a partnership that takes your footwear brand places from fast turnaround on design prototypes to budget support and worryfree fulfillment, weve perfected the footwear design and manufacturing process. One of the divisions wcf intended to shed was mercury athletic, its footwear division. Explore what makes mercury international the best provider of private label global footwear sourcing solutions.
Goldman sachs case competition 1st place 2015 by bruin asset. Mercury athletic footwear case study john liedtke head of active gear, inc. An npv analysis was conducted to determine whether the acquisition of mercury athletic was beneficial to agi, utilising the base case 20072011 projections provided by john liedtke. Adidas stepping all over athleticshoe rivals the jump involved moving 200 employees from germany to the us and investing millions in the american market. Global footwear sourcing solutions mercury international. Private label shoe manufacturers mercury international. Reasons why mercury is an appropriate target for agi. John liedtke, the head of business development for active gear, a mid.
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