23: Mergers and Other Forms of Corporate Restructuring After studying Chapter 23‚ you should be able to: Chapter 23 Explain why a company might decide to engage in corporate restructuring. Understand and calculate the impact on earnings and on market value of companies involved in mergers. Describe what benefits‚ if any‚ accrue to acquiring company shareholders and to selling company shareholders. Analyze a proposed merger as a capital budgeting problem. Describe the merger process
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Company Adidas Adidas is a German Multinational Corporation that designs and manufactures sports clothing or accessories based in Herzogenaurach‚ Bavaria‚ Germany. It is the holding company for the Adidas Group‚ which consists of Reebok sportswear company‚ TalyorMade- Adidas golf company including Ashworth‚ Rockport and 9.1% of FC Bayern Munich. Besides sports footwear‚ Adidas also produces other products such as bags‚ shirts‚ watches‚ eyewears and other sports- and clothing related goods. Adidas is
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ADIDAS 1.S.W.O.T. Analysis Strengths • In many invents is the biggest sponsor • Strong management team • Brand recognition and reputation • Diversity and variety in products offered on the web (footwear‚ apparel‚ sporting equipment‚ etc.) • Strong control over its own distribution channel • No bad reputation like child labor or environment pollution • In the Soccer industry‚ Adidas has a stronghold Weaknesses • High prices in some products • E-commerce is limited
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voluntary merger. There was significant value addition of HDFC in terms of increase branch network‚ geographic reach‚ customer base and a bigger pool of skilled manpower. For HDFC Bank‚ this merger provided an
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REEBOK & LA GEAR 1. Compute financial ratios using the guidelines provided below. Use the component ratios of return on equity to explain the reasons for the difference in the profitability across the two firms. In other words‚ is profit margin‚ asset turnover or/and financial leverage responsible for the difference in profitability? Comment on the riskiness of the two companies based on the financial ratios. I would like you to compute the ratios for 1988‚ 1989 and 1990. Data to compute the
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June 2010 Perspectives on merger integration Table of contents 5 A new generation of M&A: A McKinsey perspective on the opportunities and challenges Despite continued uncertainty‚ signs point to a surge in M&A activity that will be ambitious in both scope and profile. 11 Beyond risk avoidance: A McKinsey perspective on creating transformational value from mergers Most mergers are doomed from the beginning. Anyone who has researched merger success rates knows that roughly
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Dassler shuhfabrik which was the predecessor company of Adidas. After the World War II the two brothers had a rival‚ the company dissolved and Rudi Dassler established PUMA and Adi Dassler‚ renamed the Gebtuder Dassler Shuhfabrik to Adidas (combination of his first and last name). Adidas continued to be the most innovative company with many patents such as the track shoes with screw in-spikes. The most of the athletes in Olympic Games wear Adidas shoes. The company started to lose its market share rapidly
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and most valuable brands in the world. The CFO of Adidas‚ Dean Hawkins recently said‚ "our biggest asset isn ’t on our balance sheet‚ and that ’s our brand" http://www.shsu.edu/~mkt_ssm/mkt575/Shoes.htm The following essay will discuss some of the elements in Adidas ’s brand development that have led to it securing a place in the worlds 100 top brands and will look to the future plans it has in place to maintain its high brand equity. Adidas dates back to 1948. It is derived from the first
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HISTORY OF ADIDAS Adidas was established in 1920s by Alfred Dassler and his brother Rudolph Dassler in Germany. Firstly‚ company was produced gymnastic and soccer shoes. At the 1928 Amsterdam Olympics German athletes first showcased Dassler brothers’ shoes to the world. In 1949 Dassler brothers quarreled and Rudolph left to establish the Puma sport company while Alfred registered Adidas and the now famous three diagonal stripes. The first samples of Adidas footwear were used at 1952. Helsinki Olympics
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ADIDAS STUDY 25/9/13 13:30 Page 2 MARKETING Planning effective marketing strategies for a target audience There are countless historic sporting achievements that have Introduction taken place in adidas products. These include: Since it was established in Germany in 1949‚ by Adolf Dassler‚ • Jesse Owens’ 4 gold medals in Berlin 1936. adidas has been synonymous with the sporting industry. Today‚ • Cassius Marcellus Clay (Muhammad Ali) taking gold in the adidas is
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