Mercury Athletic: Valuing the Opportunity Essay examples

4050 SEPTEMBER 18, 2009 TIMOTHY A. LUEHRMAN JOEL L. HEILPRIN Mercury Athletic Footwear: Valuing the Opportunity In March 2007, John Liedtke, the head of business development for Active Gear, Inc., a privately held footwear company, was contemplating an acquisition opportunity. West Coast Fashions, Inc. (WCF), a large designer and marketer of men’s and women’s branded apparel had recently announced plans for a strategic reorganization. The plan called for a divestiture of certain non-core

------------------------------------------------- Mercury Athletic Footwear: Valuing the Opportunity By Christian Daba Submitted To John Katkish Background West Coast Fashions, Inc has decided to sell one of their segments, Mercury Athletic in the context of a broader reorganization. The head of the business development for Active Gear, Inc(AGI), John Liedtke, views this event as a good

Mercury Athletic Footwear Case Study John Liedtke head of Active Gear, Inc. (AGI) is contemplating whether to invest in Mercury Athletic a subsidiary of West Coast Fashions (WCF). Mercury was purchased by WCF in hopes to increase business revenue however this was not the case. Business did not do as expected, WCF was then eager to abandon its apparel. John Liedtke saw this as an opportunity to take over Mercury and as result increase its business revenue. In order to determine whether this is

Purchase Price of Mercury The purchase price of Mercury ($131,001) was valued using the average P/E multiples of comparable firms and the average net income of Mercury from 2004-2006 (Fig 8). The comparable firms were chosen based on revenues below $1,000,000. However, Marina Wilderness was disregarded for its negative leverage alongside the size of its equity market value, implying a rapidly expanding firm in contrast to Mercury. NPV Decision The valuation of the Mercury acquisition showed a

Mercury Athletic Footwear: Valuing the Opportunity Active Gear, Inc. (AGI) is a privately held footwear company and is contemplating the possibility of acquiring Mercury Athletic Footwear. West Coast Fashions Inc., a large designer and marketer of men’s and women’s branded apparel recently announced that it plans to shed its Mercury Athletic Footwear subsidiary. AGI’s head of business development, John Liedtke, believes acquiring Mercury Athletic Footwear is a good option for the company. Although

Mercury Athletic Footwear: Valuing the Opportunity Team 10 / Mergers and Acquisitions West Coast Fashions, Inc (WCF) was a large business, which dealt with men’s and women’s apparel. One of their segments was Mercury Athletic Footwear. WCF wanted to dispose off this segment. They just wanted to divest because they wanted to focus more on their core business and move it up to the elite class. John Liedtke was the Business Development Head at that time in Active Gear Inc. He had a clear idea that

[Instructor Name] FROM: Roosevelt Speight TO: Board of Directors of Mercury Shoes RE: KEY ISSUES OF MERCURY SHOES INTRODUCTION AND BACKGROUND OF MERCURY SHOES Patricia and John O’Brien, a sister and brother founded Mercury Shoes in 1974 at the University of Colorado; initially they produced normal running shoes. But then in 1980s, they started manufacturing high quality running shoes for athletes. Mercury Shoes has concentrated is design, market and sell on three main brands

Mercury  Athletic  Footwear   Valuing  the  Opportunity   [Author]   CASE  ANALYSIS         Mercury  Athletic  Footwear     Table  of  Contents   1.   Is  Mercury  an  appropriate  target  for  AGI?  Why  or  why  not?  ............................  3   2.   Review  the  projections  by  Liedtke.    Are  they  appropriate?  How  would  you   recommend  modifying  them?  ....................