Homework For Mercury 
1. Is Mercury a good target for AGI? Discuss strategic fit of brands, products, customers, and distribution. Identify specific sources of value. Discuss AGI’s strengths/weaknesses compared with other bidders.
Mercury
AGI
Brands
Acquire an iconoclastic nonconformist image that trying to exploit by adding a line of active casual footwear.
Associated with a lifestyle that was prosperous, active and fashion-conscious. products Main on men’s athletic footwear, and cover the athletic and casual footwear.
Athletic fashion wear with a classic image and casual footwear is the core business.
Customers
15 to 25 years old with an active interest in extreme sports.
The urban and suburban family members aged 25 to 45
Distribution
Shoes were sold throughout North America in a wide range of retail, athletic, department and specialty stores and via catalogs and the Internet.
Casual footwear was sold by more than 5700 North American departments. Sales of athletic footwear were made through a limited number of stores. A small percentage were sold through website.
Sources
The majority of its raw materials from foreign suppliers and had 73 professional and technical personnel in China alone to oversee the quality, production, packaging, and shipping of all its footwear.
Outsource production to a network of contract manufacturers located in china.
AGI strengths weaknesses
Simple production and supply chains contributed to its strong operating margins.
The company was among the most profitable firms in the footwear industry
Not selling through discount retailers has hurt sales growth.
The company was much smaller than competitors and this was a competitive disadvantage.
So the Mercury is a good target for AGI.
2. Analyse the projections formulated by Liedtke. Are they appropriate? Modify the base case to include synergies as appropriate. Discuss which synergies you have included and why.
We think this projection is valuable for Active Gear, Inc. There are three types of synergies.
Mercury
AGI
Brands
Acquire an iconoclastic nonconformist image that trying to exploit by adding a line of active casual footwear.
Associated with a lifestyle that was prosperous, active and fashion-conscious. products Main on men’s athletic footwear, and cover the athletic and casual footwear.
Athletic fashion wear with a classic image and casual footwear is the core business.
Customers
15 to 25 years old with an active interest in extreme sports.
The urban and suburban family members aged 25 to 45
Distribution
Shoes were sold throughout North America in a wide range of retail, athletic, department and specialty stores and via catalogs and the Internet.
Casual footwear was sold by more than 5700 North American departments. Sales of athletic footwear were made through a limited number of stores. A small percentage were sold through website.
Sources
The majority of its raw materials from foreign suppliers and had 73 professional and technical personnel in China alone to oversee the quality, production, packaging, and shipping of all its footwear.
Outsource production to a network of contract manufacturers located in china.
AGI strengths weaknesses
Simple production and supply chains contributed to its strong operating margins.
The company was among the most profitable firms in the footwear industry
Not selling through discount retailers has hurt sales growth.
The company was much smaller than competitors and this was a competitive disadvantage.
So the Mercury is a good target for AGI.
2. Analyse the projections formulated by Liedtke. Are they appropriate? Modify the base case to include synergies as appropriate. Discuss which synergies you have included and why.
We think this projection is valuable for Active Gear, Inc. There are three types of synergies.