Mercury Athletic Footwear Overview Active Gear‚ Inc. is a privately held footwear company with $470.3 million in revenue in 2006‚ making it relatively small compared to big players in the athletic and casual footwear industry. Eyeing an opportunity for growth via a bolt-on acquisition‚ John Liedtke‚ head of business development for the company‚ is looking into acquiring a subdivision of West Cost Fashions‚ Inc.‚ Mercury Athletic. With 2006 revenue of $431.1 million‚ Mercury Athletic represents
Premium Mathematics Net present value Generally Accepted Accounting Principles
Developing a Barometer for Workplace Attitude (WPA) How can attitude in the workplace be measured to impact positive change? Ray M. Valadez‚ EdD The role of attitude and its importance in decision-making are becoming more apparent to the business leader/practitioner. He/she knows that the right attitude can provide tremendous financial gains‚ along with the catalyst for the development of a learning organization‚ and will result in the thinking‚ feelings‚ and actions of a positive business
Premium Measurement Decision making Decision theory
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
Premium Free cash flow Investment Operating cash flow
endangered Active Gear’s growth. Mercury Athletic Footwear designs and distributes athletic and casual footwear dominantly to the youth market. Mercury competes in four main product lines: men’s and women’s athletic and casual footwear. Men’s athletic footwear is the leading product for Mercury Athletic. Women’s casual footwear is Mercury’s worst performing product and post-acquisition the line may be discontinued by Active Gear. The acquisition of the Mercury Athletic division has sources of potential
Premium Discounted cash flow Net present value Weighted average cost of capital
Intro: Mercury can be used in many different products such as barometers‚ florescent lamps‚ and electrical switches and can be in the fish that we eat‚ whether the fish was caught in a local lake or bought from the grocery store. Mercury is a naturally occurring element in the earth’s crust that can be moved around from volcanoes‚ coal burning plants‚ mining‚ and other natural or human actions. “Mercury is well-documented as a toxic chemical that is atmospherically transported on a local‚ regional
Premium Management Strategic management Human rights
this has led to less operating volatility and better supply chain management as well as lower DSI 3. Company weaknesses: By avoiding the chase for the latest fashion trend and avoiding big box retailers‚ the company has had very low growth 4. Mercury was a subsidiary of a large apparel company As a result of a strategic realignment‚ the division was considered to be non-core. 2006 revenue and EBITDA were $431.1 million and $51.8 million respectively Under the egis of WCF‚ Mercury’s performance
Premium Athletic shoe Cash Big-box store
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
Premium Management Psychology Education
Jide Wintoki From: Richard Smith‚ Scott Mitchell‚ Zack Gregory Re: Mercury Athletic Acquisition Based on our analysis of Mr. Liedtke’s base case projections for a potential acquisition of Mercury Athletic‚ we have concluded that this is a positive net present value project‚ and that AGI should proceed with the acquisition. Under Mr. Liedtke’s operating assumptions‚ we calculate the value of Mercury’s discounted cash flows to be $624.446 million‚ and the acquisition price to be $156.643 million‚ yielding
Premium Net present value Discounted cash flow Weighted average cost of capital
Environmental Pollution at Hindustan Lever’s Kodaikanal Plant In mid-2004‚ Hindustan Lever Ltd (HLL) executives looked back at the events of the past three years at their mercury thermometer factory in Kodaikanal in the south Indian state of Tamil Nadu. After mercury leakage from the plant had been reported in March 2001‚ heavy expenditure had been incurred in environmental risk assessment‚ waste disposal and health monitoring. The expenditure had exceeded the total profits generated by the plant
Premium Mercury Occupational safety and health
announced a strategic reorganization calling for a divestiture of certain assets‚ 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
Premium Investment Weighted average cost of capital Financial ratios