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? ................................................................................ 3 Men’s Athletic ........................................................................................................................... 3 Men’s Casual ............................................................................................................................. 4 Women’s Athletic ...................................................................................................................... 5 Women’s Casual ........................................................................................................................ 6 Consolidated ............................................................................................................................. 6
3. Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections. ............................................................................. 7 4. Do you regard the value you obtained as conservative or aggressive? Why? 10 5. How would you analyze possible synergies or other sources of value not reflected in Liedtke’s base assumption? ............................................................... 11