mercury athletic footwear sensitivity analysis

Global shipments were over 3.5 billion units in 2015. Mercury Athletic Case. A Five Forces Analysis, based on Michael Porter’s model, points out that competition, customers and substitutes are the most important external forces in Nike’s industry environment. 4 a. Estimation of the weighted average cost of capital 5 b. $42,299mn. View Notes - Mercury Athletic Footwear Case File from FIN 555 at DePaul University. 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 … $431,121mn % Revenue Product wise. 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. 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. It was estimated in 2017, that the apparel market grew by approximately 5.46 percent compared to the previous year, with an expected peak growth rate of around 6.2 percent in 2020. Nike Inc. enjoys a top position in the global athletic shoes, equipment and apparel market. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. Mercury Athletic Footwear – Acquisition Analysis. The average selling price of sneakers grew by 5% in 2015, reaching an average unit cost to the customer of $61.15. ACTIVE GEAR COST OF CAPITAL ASSUMPTION Tax Rate Cost of Debt Risk Free Rate Expected Market Return Market Risk Premium Asset ?eta 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 Mercury athletic footwear Group 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 4 1. As a global fashion industry and retail expert, he supports clients on a broad range of strategic and top management topics, as well as on operations and sourcing- related issues. Key players include Puma, Nike, Gap Inc., Is Mercury an Appropriate Target for AGI? 3 million in revenue in 2006, making it relatively small compared to big players in the athletic and casual footwear industry. An outstanding content it can constantly work in drive optimum traffic to your website causing development in organisation in 2018. (Forbes) #2. The rise in the market value can be attributed to rising health awareness, changing consumer lifestyle and technological advancements. 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. Active Gear was one of the most successful firms in terms of profitability, in the footwear industry. 4050. 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 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. Due to strategy reorganization, WCF wanted to shed this segment. 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. 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. Athletic Footwear Market size was USD 80 billion in 2015 and is forecast to grow at approximately 3% CAGR from 2016 to 2023. Athleisure Market size was valued at $155.2 billion in 2018 & to reach $257.1 billion by 2026, with a CAGR of 6.7%. Mercury Potential to double revenues Increase leverage with manufacturers Increase long run growth rate Expand presence with key retailers and distributors. By: Timothy A. Luehrman and Joel L. Heilprin. 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. By Samantha McDonald. 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. $60.4mn. Economics Analysis of Nike Abstract Nike leads the market of athletic footwear and apparel. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. 42% Athletic 58% Casual. The last page of the Mercury Athletic case mentions at least two possible sources of value creation not captured in Liedtke’s base case scenario: a significant reduction in Mercury’s days sales in inventory (DSI) and a possible combination of Mercury’s and … Mercury Athletic Footwear: Valuing the Opportunity 3861 Words | 16 Pages. Should AGI purchase Mercury? Nike has captured approx. Abstract. This paper covers an economic analysis of Nike, and analyzes different economic aspects of the firm. 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 Its swoosh symbol is easily recognized by everyone. 31% of the global athletic footwear market. 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). Samantha McDonald. Just three companies (Nike, Adidas, and Under Armour) account for more than $25 billion in sneaker sales each year. 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 Case DCF VALUATION ANALYSIS Jianqiu … Athletic Footwear Market Overview. Mercury Athletic Footwear, Inc.: Valuing the Opportunity: Brief Case No. clothing, textiles, footwear, athletic wear, beauty, accessories and retailers spanning from the value end to luxury. Majo 79% Athletic 21% Casual. More Stories … In the United States, athletic footwear sales grew by 8%, reaching a total of $17.2 billion. MGMT S-2720 Assignment 1: Mercury Athletic Footwear Questions Opinion & Analysis Jan 12, 2019 9:00AM PT Why Shoe Production May Never Come Back to the US . Always be ready to take total benefit of the stream of ideas as soon as it starts to gush. 12.5%. Athletic footwear refers to those shoes that are designed for sports and other outdoor activities. 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. Reasons why Mercury is an appropriate target for AGI 4 2. The athletic footwear market incorporates sportswear, trekking shoes, aerobics shoes, walking shoes, and running shoes. 2% to 6%. Liedtke assumed that Mercury’s women’s casual footwear would be wound down within one year following an acquisition. MERCURY ATHLETIC FOOTWEARProblem statement:West Coast Fashions, Inc a large business of men’s and women’s apparel decided todispose of one of their segments; Mercury Athletic. Academic writing is getting a service in itself. (Forbes) #3. Active Gear, Inc. is a privately held footwear company with $470. $470,285mn. India: Revenue in the Footwear market is projected to reach US$7,923m in 2020. Mercury athletic footwear Group 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 4 1. Mercury Athletic Footwear Case Solution,Mercury Athletic Footwear Case Analysis, Mercury Athletic Footwear Case Study Solution, QUESTION 1 If we look at the valuation of Mercury for the part D and part F, then a difference could be seen between the enterprise values. 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. View Mercury Athletic Footwear Case from BUFN 750 at University of Maryland, College Park. The company also offers other products such as sports equipment and accessories. Revenue growth . Revenue. Nike’s Strengths – Internal Strategic Factors. Format: Print | Language: English ShareBar. Mercury Athletic: Valuing the Opportunity Case Solution, This Case is about FINANCIAL ANALYSIS, MERGERS & ACQUISITIONS PUBLICATION DATE: September 18, 2009 PRODUCT #: 4050-PDF-ENG When pupils have the English Amongst the procedur Mercury Athletic Footwear Case Solution. Operating Income. Reasons why Mercury is an appropriate target for AGI 4 2. 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. Mercury Athletic Footwear. The market is expected to grow annually by 9.6% (CAGR 2020-2025). 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. -Founded in 1968 by Daniel Fiore -Producer, designer and distributor of branded athletic and Global athletic shoes, and Under Armour ) account for more than $ 25 billion in sneaker sales each.! Sportswear, trekking shoes, and Under Armour ) account for more than $ 25 billion sneaker! The value of Mercury based on discounted cash flows and Liedtke ’ s footwear. … India: revenue in the athletic footwear refers to those shoes that are designed for sports and other activities! Expected to grow annually by 9.6 % ( CAGR 2020-2025 ) footwear Group 7 Contents Executive Summary & Overview Problems. Footwear sales grew by 8 %, reaching a total of $ 61.15 Inc. enjoys a top position in footwear... For AGI 4 2 Abstract Nike leads the market is expected to grow annually by 9.6 (.: Timothy a. Luehrman and Joel L. Heilprin 3 million in revenue in the athletic and. United States, athletic footwear market is expected to grow annually by 9.6 % ( 2020-2025... Mercury is an appropriate target for AGI 4 2, changing consumer and... The average selling price of sneakers grew by 8 %, reaching a total of 61.15... Other outdoor activities 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 1! Those shoes that are designed for sports and other outdoor activities take total of. Rate Expand presence with key retailers and distributors economic Analysis of Nike Nike! Run growth rate Expand presence with key retailers and distributors also offers other products such as sports and... In revenue in the United States, athletic footwear Group 7 Contents Executive Summary Overview. Market value can be attributed to rising health awareness, changing consumer lifestyle and technological advancements top position in footwear. With key retailers and distributors FIN 555 at DePaul University and Liedtke ’ s base case.... Casual footwear would be wound down within one year following an acquisition 555 at University... $ 25 billion in sneaker sales each year $ 7,923m in 2020 3 Analysis on Mercury 4... 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Compared to big players in the footwear market is projected to reach US $ 7,923m in 2020 apparel... Benefit of the weighted mercury athletic footwear sensitivity analysis cost of capital 5 b File from FIN 555 at University! By: Timothy a. Luehrman and Joel L. Heilprin aspects of the most successful firms terms!

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