Mercury athletic footwear case study solution and analysis, west coast fashions, inc has decided to dispose off one of their segments, mercury athletic. Free shipping both ways on sas womens athletic shoes from our vast selection of styles. Get your custom essay on mercury athletic footwear. 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. John liedtke, the head of business development for active gear, a mid. Mercury athletic footwear designs and distributes athletic and casual footwear dominantly to the youth market. Valuing the opportunity terran knox measurements ii mba634 northwood university devos program dr.
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. Valuing the opportunity merrill lynchs acquisition of mercury asset management newmont mining corp. Mercury athletic footwear case essay 1268 words cram. Adidas mens athletic sale up to 40% off free shipping. Mercury athletic footwear mercury athletic footwear designed and distributed branded athletic and casual footwear, principally to the youth market. Find the best products at the best prices with our 100% satisfaction guarantee. Shop shoemall for a selection of mens athletic shoes. Executive summary great pressure from suppliers and competitors caused some deterioration of basic performance for agi during 20042006. Note 2 the term tennis shoes, basketball shoes, gym shoes, training shoes and the like covers athletic footwear other than sports footwear, whether or not principally used for such athletic games or purposes. Some shoes are constructed so that their natural bending point is in the middle of the foot see the bottom picture at left. Valuing the opportunity team 10 mergers and acquisitions west coast fashions, inc wcf was a large business, which dealt with mens and womens apparel. Athletic footwear market size was usd 80 billion in 2015 and is forecast to grow at approximately 3% cagr from 2016 to 2023.
Yet, the global consumption volume indicates a trend of these being used as casual and fashion footwear by people of. 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. Mercury potential to double revenues increase leverage with manufacturers increase long run growth rate expand presence with key retailers and distributors. The case uses the potential acquisition of mercury athletic as a vehicle to teach. Athletic shoe source quality athletic shoe products services including athletic shoe top items in large orders from the best global athletic shoe wholesaler and local exporters. Navy exchange service command, 3280 virginia beach blvd, va 234525724. Mercury athletic footwear discussion materials for additional coverage of the topics please see. The mercury athletic scale coinoperated arcade by great lakes system circa 1951, and its history and background, photos, repair help, manuals, for sale and wanted lists, and census survey is brought to you by the international arcade museum at the museum fo the game. Free shipping both ways on clarks athletic shoes women from our vast selection of styles. Mercury athletic footwear case dcf valuation analysis jianqiu huang 114833532 bochao liang 115002548 jie xu.
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. Exhibit 4 presents recent income statements and balance sheets for mercury. 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. Excel solution to a mercury athletic case analysis cyber essays. Whether youre looking to lace up a new pair of running shoes to take you from the track to the trail, to slip on a pair of boots for a day of horseback riding, or to find a pair of cleats for the new soccer season, offers a wide range of mens athletic shoes in a variety of colors, styles, brands, sizes, and materials. Pdf on mar 1, 2005, jeroen merk and others published regulating the global athletic footwear industry. Mercury athletic valuing the opportunity free essays. Global athletic footwear industry growth trends forecast. Our proven footwear sourcing solutions, from business intelligence to accelerated product development resources, enhance your product management options.
Wcf, a large designer and marketer of mens and womens branded apparel had recently announced plans for a strategic reorganization. Mercury athletic footwear back ground west coast fashions, inc. Mercury is the leading endtoend manufacturer to global brands and retailers. Mercury athletic footwear group assignment 1 mercury.
To perform a preliminary valuation, liedtke developed a base case set of financial projections based on forecasts of revenue and operating income for each of mercury s four main segments as shown in exhibit 6. Mercury add jessica breland and nia coffey to phoenix family. Essay about mercury athletic footwear 1737 words bartleby. By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them. Shop s huge selection of new mens athletic and save big. When adidas overtook jordan brand, a subsidiary of nike, for second in sports footwear sales in the fall, powell tweeted, this is an. Mercury athletic footwear discounted cash flow discounting. Mercury athletic diversified contract manufacturer base asia athletic and casual footwear lines geographically diversified sale networks strong market research experience efficient inventory management system welldeveloped product designs suburban customer base urban. In his preliminary valuation and analysis, liedtke came up with a basis of making financial projections based on the revenue forecasts and operating income for all the four mercury s major segments namely.
Mercury athletic valuing the opportunity casejungle. Mercury athletic footwear case dcf valuation analysis jianqiu. A wide variety of athletic shoes options are available to you, there are 6,636 suppliers who sells athletic shoes on, mainly located in asia. The last page of the mercury athletic case mentions at least two possible sources of value creation not captured in liedtkes base case scenario. Mercury athletic footwear case solution and analysis, hbr.
Mercury athletic footwear case solution free essays. 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. Forefoot flexion at the toes shoes should bend where your toes bend see top picture at left, but not all shoes do. Mercury athletic footwear free download as word doc. 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. The top countries of suppliers are india, china, and taiwan, china, from which the percentage of athletic shoes supply is 1%, 97%, and 1% respectively. May 06, 2016 complimentary business structures company features active gear, inc. West coast fashions, inc a large business of mens and womens apparel decided todispose of one of their segments. One of their segments was mercury athletic footwear. Spenco, a leading producer of high quality insoles, foot care products, and shoes, provides the most advanced sports medicine and first aid products available. Nike swot 2020 swot analysis of nike business strategy hub. The athletic footwear market incorporates sportswear, trekking shoes, aerobics shoes, walking shoes, and running shoes.
Estimation the value of mercury based on discounted cash flows and liedtkes base case projections. A stable shoe is one where there is minimal motion of the front of the shoe on the rear of the shoe. The strategic merits of acquiring mercury from liedtkes perspective. Agi is a privately held footwear company and is contemplating the possibility of acquiring mercury athletic footwear. Executive summary the footwear industry is highly competitive industry with fairly stable profit margins. Mercury athletic footwear case study assignment help center. 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.
Liedtkes base case assumed that womens casual footwear would be wound down within one year following. Brittney griner will continue to call the valley home. Goldman sachs case competition 1st place 2015 by bruin. Valuing the opportunity case solution,mercury athletic. When students have the englishlanguage pdf of this brief case in a coursepack, they will also have the option to purchase an audio version. It was found by bill bowerman and phil knight in the year 1964. Acquisition of mercury athletic jb gough active gear, inc. The strategic merit is that both companies mercury and agi, are footwear companies that attract the youth market. Operating expenses new target market asset protection strategy competitive advantage incorporating. Mercury athletic footwear mercury athletic footwear mercury athletic footwear question 1 based on the information in the case study, calculate the value of mercury athletic footwear as an independent firm at the time of the case study using the free cash flow method. Example of mercury athletic footwear case case study wow.
Mercury athletic case the last page of the mercury. Mercury athletic scale arcade by great lakes system. 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. Estimation of the weighted average cost of capital 5 b. View mercury athletic footwear case from bufn 750 at university of maryland, college park. The company specializes in athletic wear, providing footwear, apparel, athletic. Goldman sachs case competition 1st place 2015 by bruin asset. Athletic footwear refers to those shoes that are designed for sports and other outdoor activities.
Mercury athletic footwear group assignment question 1. The head of the business development for active gear, inc. The mercury news is the leading source of breaking news, local news, sports, business, entertainment, lifestyle and opinion for silicon valley, san francisco bay area and beyond. Excel solution to a mercury athletic case analysis.
Briefly discuss the potential benefits of acquiring mercury for agi. Mercury athletic slides free download as powerpoint presentation. Shop s huge selection of adidas athletic for men over 70 styles available. Mens training shoes shop your navy exchange official site. Mercury athletic footwear case mercury athletic footwear.
Mens athletic footwear is the leading product for mercury athletic. New mens athletic sale free shipping new mens athletic. Athletic shoe, athletic shoe suppliers and manufacturers hktdc. Ice point solutions darren tan darryl tan fangfei li will wolf. When students have the englishlanguage pdf of this brief case in a coursepack. Agi, a privately held athletic and casual footwear company, contemplated an acquisition opportunity of mercury that would significantly improve his business. Founded in 1968 by daniel fiore producer, designer and distributor of branded athletic and. John liedtke, the head of business development for active gear, inc. Valuing the opportunity in march 2007, john liedtke, the head of business development for active gear, inc. Mercury athletic footwear, inc valuing the opportunity. Mercury s athletic shoes became popular due to extreme sports enthusiasts and the exposure of the xgames. The benefits of acquiring mercury by adi are mainly the 100% increase in revenue, expansion in key retailers and distributors, and increase leverage with contract manufacturers. Lightweight sneaker type flexible soled footwear capable of.
Valuing the opportunity complete valuation of a potential acquisition of mercury athletic footwear by active gear. Mercury athletic footwear valuing the opportunity essay. Mercury athletic footwear designs and distributed athletic and casual shoes to the young market. Reasons why mercury is an appropriate target for agi 4 2. The global athletic footwear market is affected by various changing trends in various regions. You can change your cookie settings at any time but parts of our site will not function correctly without them. Fast delivery, and 247365 realperson service with a smile. Mercury athletic footwear by dylan marschall on prezi. 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. 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. Mercury athletic footwear case study solution harvard case. Joel l heilprin in january 2007, west coast fashions, inc.
Valuing the opportunity case analysis, mercury athletic. Browse mens athletic footwear in a variety of styles to suite all your active shoe needs, plus free shipping. Womens training shoes shop your navy exchange official site. Freddie mercury shoes sneakers hi tops customised shoes for women men hand painted shoes.
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