Mercury Athletic Footwear, Inc.: Valuing the Opportunity: Brief Case No. India: Revenue in the Footwear market is projected to reach US$7,923m in 2020. Mercury Athletic Footwear Case Solution, Analysis & Case Study Help Mercury Athletic Footwear Case Solution Testimonials basic procedures for estimating terminal price inside the valuation of companies. 12.5%. In the first excess free cash flow analysis ran for Mercury Athletic Footwear, as can be seen in Exhibit 1, we used the assumptions given by Liedtke. Always be ready to take total benefit of the stream of ideas as soon as it starts to gush. $431,121mn % Revenue Product wise. Mercury Athletic Footwear Case Solution. Samantha McDonald. Nike Inc. enjoys a top position in the global athletic shoes, equipment and apparel market. Strong Brand Awareness – Nike is one of the most recognizable brands in the world as its name alone is memorable, easy to pronounce, and very unique. Athletic footwear refers to those shoes that are designed for sports and other outdoor activities. The athletic footwear market incorporates sportswear, trekking shoes, aerobics shoes, walking shoes, and running shoes. 4 a. Estimation of the weighted average cost of capital 5 b. The case uses the potential acquisition of Mercury Athletic as a vehicle to teach students basic DCF (discounted cash flow) valuation using the weighted average cost of capital (WACC). Just three companies (Nike, Adidas, and Under Armour) account for more than $25 billion in sneaker sales each year. Global Athletic Footwear Market is expected to reach $114.8 billion by 2022, growing at a CAGR of 2.1% during the forecast period 2016 - 2022. Should AGI purchase Mercury? 4050. Mercury Athletic Footwear: Valuing the Opportunity Case Study Solution & Analysis Why Almost Everything You’ve Learned About Mercury Athletic Footwear: Valuing the Opportunity Case Solution Ideas Is Wrong and What You Should Know. Mercury Athletic Footwear: Valuing the Opportunity 3861 Words | 16 Pages. An outstanding content it can constantly work in drive optimum traffic to your website causing development in organisation in 2018. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. The rise in the market value can be attributed to rising health awareness, changing consumer lifestyle and technological advancements. Mercury Athletic Footwear. 79% Athletic 21% Casual. By Samantha McDonald. $60.4mn. Mercury Athletic Footwear Case Study Analysis is really simple to comprehend it's centered on creating content that can be readily discovered by leading search engines such as Google, Yahoo, and Bing. 3 million in revenue in 2006, making it relatively small compared to big players in the athletic and casual footwear industry. Academic writing is getting a service in itself. clothing, textiles, footwear, athletic wear, beauty, accessories and retailers spanning from the value end to luxury. Liedtke assumed that Mercury’s women’s casual footwear would be wound down within one year following an acquisition. In the United States, athletic footwear sales grew by 8%, reaching a total of $17.2 billion. Majo Format: Print | Language: English ShareBar. 2% to 6%. 4050 SEPTEMBER 18, 2009 TIMOTHY A. LUEHRMAN JOEL L. HEILPRIN Mercury Athletic Footwear: Valuing the Opportunity In March 2007, John Liedtke, the head of business development for Active Gear, Inc., a privately held footwear company, was contemplating an acquisition opportunity. $42,299mn. In order to summarize, due to AGI’s small size, there is a strong risk of being overtaken by the other giant players in the market therefore, if it acquires Mercury, the risk will be minimized and there is a strong opportunity that the company will grow steadily. Mercury Athletic Footwear 2 Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are provided with a case study. Revenue growth . Is Mercury an Appropriate Target for AGI? 42% Athletic 58% Casual. Opinion & Analysis Jan 12, 2019 9:00AM PT Why Shoe Production May Never Come Back to the US . Reasons why Mercury is an appropriate target for AGI 4 2. More Stories … Revenue. Market Analysis: Global Athletic Footwear Market Global athletic footwear market is expected to rise to an estimated value of USD 96.10 billion by 2026, registering a steady CAGR in the forecast period of 2019-2026. Nike’s Strengths – Internal Strategic Factors. Athleisure Market size was valued at $155.2 billion in 2018 & to reach $257.1 billion by 2026, with a CAGR of 6.7%. View Mercury Athletic Footwear Case from BUFN 750 at University of Maryland, College Park. Mercury Potential to double revenues Increase leverage with manufacturers Increase long run growth rate Expand presence with key retailers and distributors. Amongst the procedur Mercury Athletic Case. The market is expected to grow annually by 9.6% (CAGR 2020-2025). Mercury athletic footwear Group 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 4 1. Athletic Footwear Market size was USD 80 billion in 2015 and is forecast to grow at approximately 3% CAGR from 2016 to 2023. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. Mercury Athletic: Valuing the Opportunity Case Solution,Mercury Athletic: Valuing the Opportunity Case Analysis, Mercury Athletic: Valuing the Opportunity Case Study Solution, When pupils have the English language PDF of this Brief Case in a coursepack, they are going to … Economics Analysis of Nike Abstract Nike leads the market of athletic footwear and apparel. $470,285mn. This paper covers an economic analysis of Nike, and analyzes different economic aspects of the firm. Mercury Athletic is the footwear division of West Coast Fashions (WCF), a designer and distributer of branded athletic and casual footwear, targeted at youth market. C I T E L Y H T AT T U N I : Y R R O R P A P U EE O C R H E TW T M OI N G FOA L U V RECOMMENDED VALUE Range of View Notes - Mercury Athletic Footwear Case File from FIN 555 at DePaul University. Mercury Athletic Footwear  Mercury Athletic Case Nicholas Thebeau, Student ID 50927830 Presented to: Professor Kevin Wall West Coast Fashions, Inc. (WCF), a large designer and marketer of men’s and women’s branded apparel recently announced plans for a strategic reorganization Active Gear, Inc. (AG), a privately held footwear company, was contemplating an acquisition opportunity. Mercury Athletic Footwear - Acquisition Analysis ACTIVE GEAR COST OF CAPITAL ASSUMPTION Tax Rate Cost of Debt Risk Free Rate Expected Market Return Market Risk Premium Asset βeta Debt-to-Value Ratio Debt-to-Equity Ratio Equity Beta 40.0% 6.00% 4.93% 10.43% 5.50% 20.0% 25.0% 0.970 CASH FLOW AND OPERATING ASSUMPTIONS Reasons why Mercury is an appropriate target for AGI 4 2. Its swoosh symbol is easily recognized by everyone. Key players include Puma, Nike, Gap Inc., The average selling price of sneakers grew by 5% in 2015, reaching an average unit cost to the customer of $61.15. MGMT S-2720 Assignment 1: Mercury Athletic Footwear Questions AGI Mercury Athletic Footwear $470.3 Million Sales Revenue in 2006 42% Revenue - Athletic Footwear 58% Revenue - Casual Footwear Among the best profit margins in the Industry Prosperous, Active, and Fashion-Conscious Brand Image. 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