Acquisition of Reebok by Adidas, M&a Deal in the Sports Industry
Abstract
This report presents a brief summary of the M&A deal and the performance of the Adidas-Salmon Group and the Reebok International which are the top players after Nike, in sportswear market.
Mergers and Acquisitions is an extreme matter of concern in the corporate world since last few decades. M&A can also be considered as a main vehicle which drives towards direct investments, either domestic or foreign. With motives of achieving greater efficiency and effective strategies, most of the companies had gone through at least one M&A activity at least once in a lifetime.
This report contains theories regarding Mergers and Acquisition and is focused on the Cross-border M&A (Adidas- A German company and Reebok- an American company). It includes the acquisition process and presents the motives behind the acquisition of Reebok by Adidas. The report also includes the analysis to identify whether synergy (Value of (Adidas+ Reebok) > Value of Adidas+ Value of Reebok) has been achieved or not. It can be identified through performance measurement and evaluation. The analysis of the company’s annual reports and the reviews in various websites contributed to determine whether the company is able to achieve its target objectives.
Table of Contents
S.N. Title Page No.
1. Introduction 1
2. Literature Review 2
a. The need of Merger 2
b. Due diligence 3
2.2.1 Legal and regulatory issues 3
2.2.2 Tender offer 3
2.2.3 Empirical Evidence 4
2.2.4 Strategies of Adidas & Reebok 4
3. Methodology 5
4. Discussion 5 a. Synergies achieved 5
4.2 Financial Analysis 6
4.3 Targets and Achievements: Post merger evaluation 7
5. Conclusion and Recommendations 9
References 10
1. Introduction
Corporate Restructuring is the process of reconstructing the operational, financial, legal and other structures of an organization in
This report presents a brief summary of the M&A deal and the performance of the Adidas-Salmon Group and the Reebok International which are the top players after Nike, in sportswear market.
Mergers and Acquisitions is an extreme matter of concern in the corporate world since last few decades. M&A can also be considered as a main vehicle which drives towards direct investments, either domestic or foreign. With motives of achieving greater efficiency and effective strategies, most of the companies had gone through at least one M&A activity at least once in a lifetime.
This report contains theories regarding Mergers and Acquisition and is focused on the Cross-border M&A (Adidas- A German company and Reebok- an American company). It includes the acquisition process and presents the motives behind the acquisition of Reebok by Adidas. The report also includes the analysis to identify whether synergy (Value of (Adidas+ Reebok) > Value of Adidas+ Value of Reebok) has been achieved or not. It can be identified through performance measurement and evaluation. The analysis of the company’s annual reports and the reviews in various websites contributed to determine whether the company is able to achieve its target objectives.
Table of Contents
S.N. Title Page No.
1. Introduction 1
2. Literature Review 2
a. The need of Merger 2
b. Due diligence 3
2.2.1 Legal and regulatory issues 3
2.2.2 Tender offer 3
2.2.3 Empirical Evidence 4
2.2.4 Strategies of Adidas & Reebok 4
3. Methodology 5
4. Discussion 5 a. Synergies achieved 5
4.2 Financial Analysis 6
4.3 Targets and Achievements: Post merger evaluation 7
5. Conclusion and Recommendations 9
References 10
1. Introduction
Corporate Restructuring is the process of reconstructing the operational, financial, legal and other structures of an organization in
References: 1. Admin, (2010) Adidas-Reebok merger. 20th June, shoesbuybuy.com, Available from: http://www.shoesbuybuy.com/blog/2010/06/adidas-reebok-merger/ Accessed [06/08/2010] 2 3. Boeh, K. and Beamish, P. (2007) Mergers and Acquisitions. India, Sage Publications 4 5. Hadfield, W. (2006), Adidas scores savings with global recruitment system, ComputerWeekly.com, Available from: http://www.computerweekly.com/Articles/2006/12/08/220436/Adidas-scores-savings-with-global-recruitment-system.htm Accessed [23/07/2010] 6