Mercury Case Essay

1115 Words Mar 23rd, 2012 5 Pages
Mercury Case

A) Is Mercury an appropriate target for AGI? Why or why not?

There are characteristics of Mercury that make it an appropriate target, and some that make it not. The different characteristics presented in the case are as follows:

Acquisition appropriate:

* Same industry/similar products, and Mercury does their manufacturing in China (Pg 4) like AGI, so Mercury would increase the leverage with contract manufacturers (Pg 1), which helps since AGI does most of it’s manufacturing in China, and China just had a recent wave of consolidation among Chinese contract manufacturers which gave the Chinese more leverage over AGI (Pg 3) * The merger would expand AGI’s presence with key retailers and distributers (Pg 1)
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B) Review the projections by Liedtke. Are they appropriate? How would you recommend modifying them?

Liedke’s projected revenue growth of 3% is not accurate I feel, as when I take an average of the revenue growth (2005/2004=5%,
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