Some data is given while other data is calculated. Mercury Athletic Case. Mercury Athletic Case.docx . Mercury competes in four main product lines: men’s and women’s athletic and casual footwear. Review the projections by Liedtke. In order to expand the scale of AGI, increase its revenue and gain larger market share, we, believe that Mercury is an appropriate target for AGI. Mercury Athletic Footwear: Valuing Opportunity Case Summary: John Liedtke, head of business development for Active Gear Inc. (AGI), is evaluating the acquisition of Mercury Athletic (Luehrman & Hielprin, 2009). Mercury athletic footwear Group 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 4 1. Mercury Athletic Footwear: Valuing the Opportunity. Communal harmony essay citizen kane analysis essay on the cost with the significance of this services reviews: measure your office cubicles. Mercury Athletic: Valuing the Opportunity is a Harvard Business (HBR) ... announced a strategic reorganization that would result in the divestiture of their wholly owned footwear subsidiary, Mercury Athletic. Therefore, there is an opportunity for AGI if it acquires Mercury along with the women’s casual footwear division. Thus, changes in working capital are also adjusted in the free cash flows. The strategic merit is that both companies Mercury and AGI, are footwear companies that attract the youth market. £12.89. Mercury Background 2003 - acquired by West Coast Fashions (WCF) Attempted brand extension through apparel line Business stalled Mercury CEO eager to return exclusively to footwear Four footwear product lines Men’s/Women’s athletic Men’s/Women’s casual 2006: Revenue - $431.1 million EBITDA - $51.8 million Working capital is calculated by subtracting current liabilities from current assets. Mercury Athletic Footwear Case Solution is just one of the most basic approaches to earn money writing. Comparable data is used to calculate the beta value therefore,WACC is calculated to be 10.8%. RRP: £120.00. For making a decision regarding the acquisition being appropriate or not, the facts and side effects of acquisition should be considered first. The industry is same, products are similar, markets are similar, greater ability to merge each other’s operating efficiencies and improve deficiencies, therefore it is evident that these factors confirm that Mercury is … Are they appropriate? Mercury Athletic Footwear designed and distributed branded athletic and casual footwear, principally to the youth market. Hélices . An Overview of the Problem John Liedtke, the head of business development for Active Gear, Inc. wanted to acquire Mercury Athletic, footwear division of WCF. Mercury athletic footwear was acquired by the West Coast Fashion in late 2003. Therefore, the projections might not be appropriate asitwill not reflect the true worth of the company. Les technologies avancées de turbo compression et d’injection produisent une gamme de puissances soigneusement calibrées pour les performances en milieu marin et une économie. an ag em en t. Active Gear Demographics. 5 pages. Mercury Athletic Footwear - Acquisition Analysis SENSITIVITY OF NPV - WITH BASE CASE CASH FLOWS N P V TARGETED DEBT-TO-VALUE RATIO N P V 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% ESTIMATED ASSET BETA 0.50 $587,481 $594,970 $602,650 $610,527 $618,610 $626,905 $635,422 $644,170 $653,159 $662,397 $671,896 $681,668 TERMINAL PERIOD (POST-2011) GROWTH RATE … Mercury Athletic Footwear Case DCF VALUATION ANALYSIS Jianqiu … Mercury Diesel. Mercury competes in 4 segments: casual men’s, athletics men’s, casual women’s, and athletic women’s footwear. While projecting the operating performance of Mercury, AGI has taken many assumptions which are: AGI expects that the manufacturing of women’s casual footwear will be stoppedoncethe acquisition is done, since this product line is facing failure by generating operating losses. How would you recommend modifying them? £7.99. Content writing is a style of writing in which a person has been required to do lots of research study, and that research can on occasion influence your own writing style. Free cash flows are calculated based on the projected data whereas,depreciation is added back. The sales and distribution are made through large distributors and departmental … Mercury...appropriate target?   Terms. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. Get this from a library! Mercury Athletic Footwear Case - Mercury Athletic Footwear Case DCF VALUATION ANALYSIS Jianqiu Huang 114833532 Bochao Liang 115002548 Jie Xu 115055964, 106 out of 110 people found this document helpful, In order to make a estimation, we collect all the basic data and work out some essential, indicators such as Estimation of the weighted average cost of capital (WACC), estimation on, the free cash flows from 2007 to 2011 and Long-term growth rate and terminal value. Mercury … This quiz will focus on the necessary ingredients of the valuation. The last page of the Mercury Athletic case mentions at least two possible sources of value creation not captured in Liedtke’s base case scenario: a significant reduction in Mercury’s days sales in inventory (DSI) and a possible combination of Mercury’s and … Mercury Athletic Footwear designs and distributes athletic and casual footwear dominantly to the youth market. … Like most retailers, manufacturing and production was done in China. 2 pages. Mercury Athletic Footwear. View more. In January 2007, West Coast Fashions, Inc, a large designer and marketer of branded apparel, announced a strategic reorganization that would result in the divestiture of their wholly owned footwear subsidiary, Mercury Athletic. Recomendaciones Sinergias Incrementara la produccion y las ventas asi como el tamaño de la empresa. Is Mercury an appropriate target for AGI.docx; Azusa Pacific University; ACC 211 - Fall 2016. As a result,China had become the larg­ est manufacturer of athletic footwear for the U.S. market, commanding 85 percent of the category.4 The U.S. trade deficit in shoes was expected to con­ tinue to deepen, as more manufacturers shifted pro­ duction offshore. Blog. It is further assumed that same degree of leverage that AGI has will be applied to Mercury, thus the cost of debt will then be 6%. Debido al mayor volumen de produccion mejorar sus negociaciones con los proveedores. AGI can use its own management and operational strategies to make this product line profitable since as per the case, this will result in synergies of operations. Mercury Athletic Case.docx . Mercury had revenues of $431.1 million and EBITDA of $51.8 million during 2006. The revenue growth rate has been assumed based upon certain assumptions. Blog. It has four lines of products, which include Men and Women casual and athletic footwear. Active Gear had recently increased its supplier concentration to improve its negotiating position because AGI’s small size was becoming a competitive disadvantage. Please place the order on the website to get your own originally done case solution, Mercury Athletic Footwear: Valuing the opportunity, Mercury Athletic: Valuing the Opportunity, CASE ANALYSIS: MERCURY ATHLETICS FOOTWEAR: VALUING THE OPPORTUNITY, Merrill Lynch’s Acquisition of Mercury Asset Management, Newmont Mining Corp. and a Mercury Spill in Peru (A), New Balance Athletic Shoe, Inc. (Abridged), Valuing a Business Acquisition Opportunity, Engineering Management Case Study Examples With Solution, For the calculation of discounted cash flow using the projected data, different assumptions were taken to calculate the value of WACC. However, he didn’t know if, Mercury is an appropriate target for AGI. This preview shows page 1 - 3 out of 5 pages. 4. 41 - 50 of 500 . Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. ATHLETIC SHOE INDUSTRY' The United States was the world's largest mari Kay By Katrina, Art Paper For Painting, Jam A Lot Records, 1999 Honda Accord Problems, John Brown Shipyard Photos, Twitter Sentiment Analysis Research Paper, Pedigree Puppy Food 36lb, Kaspersky Full Scan Keeps Stopping, Flights From Bristol Summer 2020, Alpro Oat Milk No Sugar,