Mercury Athletic Footwear: Valuing the Opportunity Group 1 Bushra Javed Butt M. Sharjeel Shahid Mahnoor Malik Uzair Nasir MBA II – Section A Submitted To: Sir Nawazish Mirza Introduction West Coast Fashions‚ Inc. (WCF)‚ a large designer and marketer of men’s and women’s apparel decided to dispose of one of their divisions; Mercury Athletic. John Liedtke‚ head of the business development for Active Gear‚ Inc. (AGI)‚ saw a possible opportunity for his company in acquiring Mercury. The footwear
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Mercury athletic footwear Group 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 4 1. Reasons why Mercury is an appropriate target for AGI 4 2. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. 4 a. Estimation of the weighted average cost of capital 5 b. Estimation of the free cash flows from 2007 to 2011 5 c. Estimation for long-term growth rate and estimate the terminal value 5 d. Estimation value of
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and one of the divisions it intended to shed was Mercury Athletic‚ its wholly owned footwear subsidiary. John Liedtke‚ the head of business development for Active Gear‚ Inc. (AGI)‚ a privately held athletic and casual footwear company‚ contemplated an acquisition opportunity of Mercury that would significantly improve his business. So‚ he wanted to evaluate this opportunity. This paper introduces the basic situation and feathers of current athletic and casual footwear industry and raises that active
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Question1 – What does the Ghana Case reveal about why countries progress? Fail to progress? Ghana was organized as a self –supporting entity funded by local resources and loans. More so than the other British colonial powers‚ The British promoted education and employed skilled indigenous people throughout the civil service. The government took a laissez-faire approach to commerce‚ Was opened the first bank in Ghana(Standard Bank now) Cocoa was introduced by Presbyterian missionaries
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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
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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
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Mercury Athletic Footwear: Valuing the Opportunity Terran Knox Measurements II MBA-634 Northwood University DEVOS Program Dr. Adam Guerrero 4 March‚ 2015 Problem Statement Mercury Athletic is the footwear division of West Coast Fashions (WCF)‚ a designer and marketer of men’s and women’s apparel. Due to unspectacular financial reports‚ the division was going to be sold. John Liedtke‚ the head of business development for Active Gear‚ Inc.‚ (AGI) looked to acquire Mercury from WCF‚ believing
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las líneas de alta tecnología para el tenis y golf‚ que luego pasó a la línea casual. • West Coast Fashion‚ compañía diseñadora de ropa. • Mercury Athletic‚ división de calzado deportivo de West Coast Fashion Puntos relevantes: En marzo de 2007‚ Active Gear está contemplando una oportunidad de una adquisición. Con la adquisición de Mercury Athletic‚ Liedtke espera: • Aumentar los ingresos de Active Gear al doble. • Incrementar el apalancamiento con las manufactureras. • Expandir la presencia
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PROJECTIONS The engineering drawing is a set of conventions for the representation of object with technical purposes (design‚ production).For that‚ we use graphical projections. GRAPHICAL PROJECTION: The production of a two dimensional image of a three dimensional object. HISTORY OF PROJECTIONS: Throughout human history we have used pictures to convey ideas‚ express ourselves‚ present information‚ etc. Basically we have used pictures to communicate. The difference in drawings across time
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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 the project to acquire Mercury Althletic has a positive net present value at $243‚025 (in thousands) [ given by PV(FCF)=86‚681+ PV (Terminal Value) =156‚343] which is also greater than the recommended acquisition price of $186
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