In: Business and Management

Submitted By ccastedo
Words 295
Pages 2
Preguntas Caso Mercury Athletic Footwear (MAF)

1. ¿Cuáles son las características de la Industria del calzado?
NO ESTA LISTA, YA QUE PRIMERAMENTE DEBE TENER UNA MAYOR ACEPTACION EN EL MERCADO 4. Realice un análisis FODA de la empresa Mercury Athletic Footwear para la empresa Active Gear, Inc.

5. ¿Considera que es un fit estratégico idóneo la adquision de Mercury Athletic Footwar por parte de Active Gear, Inc? ¿Porqué?

6. ¿Cuánto puede valer la empresa Mercury Athletic Footwear sola, como adquisición independiente?

7. ¿Cuáles son las posibles sinergias que traería la adquisición de Mercury Athletic Footwear para Active Gear, Inc?

8. ¿Cuánto vale la empresa para Mercury Athletic Footwear? ¿Para Active Gear, Inc.?

9. ¿Cuánto ofertaría por la adquisición de Mercury Athletic Footwear si fuesen los…...

Similar Documents

Mercury Pollution

...• Mercury is a neurotoxin that can harm the developing brains of children and infants; in adults, exposure can lead to memory loss and affect fertility and blood pressure. • Biggest emitters- o Coal fired power plants- Coal accounts for nearly 50 percent of the electricity generated in this country—and almost 50 tons of mercury emissions annually. o Cement kilns- all the cement kilns in the U.S. combined pump out roughly 23,000 pounds of mercury every year. The group released a report last July finding that, individually, some cement kilns emit nearly one and a half times more mercury than the most polluting coal-fired power plants. o Trash incinerators. Hazardous waste, medical waste, and regular garbage incinerators release 13.1 tons (or about 26,000 pounds) of mercury every year, according to statistics from the EPA. The mercury comes from common household items, such as compact fluorescent light bulbs and thermostats, and from automobile scrap. • Studies tend to find that environmental degradation and income have an inverted U- shaped relationship, with pollution increasing with income at low levels of income and decreasing with income at high levels of income. • Use the GEMS- global environmental monitoring system • Past income has been a major determinant of current pollution standards. • The metals and toxics prove difficult to remove from drinking water by standard purification procedures and also bioaccumulate in fish that are later ingested by humans. Many...

Words: 1060 - Pages: 5


...Cameron Wilbert GLG 171 4/24/13 Prof Gutierrez Mercury is a toxic element that pollutes our lakes and streams in the United States and around the world. Some might ask what mercury is. It is a silvery colored element that is naturally found in air, water, soil and even rocks. It is a dense liquid of the heavy metals category of elements. It can be commonly found in thermometers, batteries, light switches and fluorescent light bulbs. Mercury pollution comes from coal burning power plants. When it is released into the air it returns to earth via rain and snow and therefore deposited into our bodies of water. Once the mercury is in our water it is transformed by bacteria and sunlight into the most toxic form of mercury; methyl-mercury. Most mercury that is in our environment can be found as a gas; Hg. When it is high in the air it converted into Hg (ii). Methyl-mercury is so dangerous because it is highly soluble and bio accumulative in the food chain. Bio accumulation is the process where organisms take up a contaminant faster than their bodies can eliminate it. As mercury moves up the food chain it bio magnifies and the contaminants concentration becomes more and more dangerous each time it grows. It enters the food chain first by small insect and animals which are then ate by smaller fish and so on, each time the methyl is passed on to the cells of the fish until they reach the predatory biggest fish in the environment. The fish at the top of the food chain; big mouth......

Words: 621 - Pages: 3


...Mercury Athletic Footwear | Caso Mercury Athletic Footwear | Valorización de Empresas | | | 11/05/2013 | Cuellar, Sandra Karina Gudiel Alfaro, Guillermo José Guerra Caballero, Mario Alexis Contenido Preguntas del caso Inversiones financieras BancoSal 2 ¿Cuál es la temática del caso? 2 Realice un análisis del sector y la empresa 2 FORTALEZAS 2 OPORTUNIDADES 2 DEBILIDADES 3 AMENAZAS 3 ¿Cuáles son las diferencias entre las empresas del sector financiero y sector industrial? 3 Elabore un diagnóstico de rentabilidad y riesgo de la empresa 4 ¿Qué método es más empleado en la valorización de empresas financieras? 4 Valorice la empresa y su patrimonio 5 ¿Cuánto seria lo máximo que pagara para adquirir el 51% del capital de la empresa? 5 ¿Cómo recomienda tratar al accionista minoritario? ¿Opciones de salida? ¿Representación en la junta directiva? 5 Caso 4: Mercury Athletic Footwear. West Cost Fashion, Inc es un negocio grande de ropa para hombre y mujeres que a decidido deshacerde de uno de sus segmentos; Mercury Athletic Footwear, empresa de calzado. John Liedtke director de desarrollo de negocios de Active Gear, Inc (AGI). Tiene una posibilidad para adquirirla y desea evaluar cuanto es lo que tendría que pagar por si desea hacerse con la empresa Mercury Preguntas del caso Mercury Athletic Footwear ¿Cuáles son las características de la industria del calzado? La industria del calzado es muy competitiva, con bajo crecimiento y...

Words: 1036 - Pages: 5

Mercury Athletic

...MERCURY ATHLETIC FOOTWEAR Problem statement: West Coast Fashions, Inc a large business of men’s and women’s apparel decided to dispose of one of their segments; Mercury Athletic. John Liedtke, head of the business development for Active Gear, Inc saw it has a possible opportunity for them to acquire it. The footwear industry is very competitive, with low growth and stable profit margins. AGI is very profitable but it is smaller than its competitors, which is becoming a disadvantage. Therefore, Liedtke believes that if they takeover Mercury will double AGI’s revenue, increase it’s leverage with contract manufactures and expand its presence with key retailers and distributions. Liedtke is evaluating the company in order to find out whether the future benefits justify or surpass the present value of the investment in Mercury. Analysis: In order for Liedtke to get a broader picture on the acquisition of Mercury, he needs to compare and analyze a list of financial data from 2006 to 2011; projected balance sheet accounts, operating results and free cash flows, and cost of capital calculations. This data will enable him to identify the strengths and weaknesses of this acquisition. First lets look a summary of the operations of both AGI and Mercury Athletics’ actual operations based on the last year given 2006 before AGI plans of acquiring Mercury. | |Active Gear, Inc |Mercury Athletic ...

Words: 3074 - Pages: 13


...Mercury Toxicity Flamesia Starks 06/16/2013 SCI/275 Mercury Toxicity is an environmental problem that most people do not know about and sometimes it is a common household item most use every day. It affects people, animals and other wildlife. Solutions that can be easy and affective if there are used the proper way. It affects humans and wildlife and can put a permanent damage to our body and earth. Mercury Toxicity One of the issues that threaten the community that I live in is Mercury Toxicity. Mercury is a natural metal found throughout the environment. The metal is liquid at room temperature and is easily combined with other metals and it also expands and contracts evenly with temperature. Once Mercury enters and circulates in and out of our atmosphere it ends up at the bottom of our oceans and other water supply. It is persistent because it does not break down, go away or degrade. Mercury is a potent neurotoxin and if put into the body can cause decreased ability to see, hear, talk and even walk. It also causes very dramatic changes to you personality and makes you irritable and confused in most cases. There are many other things it can destroy in the body such as your brain, kidney, and lungs. It only takes a small amount of this metal as in a teaspoon to contaminate over 20 aces of water. So that is it is it is important to plan and......

Words: 734 - Pages: 3


... Mercury - History and Naming Mercury, the planet closest to the Sun, circles the Sun faster than all the other planets in our solar system, which is why the Romans named it after the swift-footed messenger god Mercury (Space exploration, 2013). Human observers have been looking up at Mercury since at least the time of the Sumerians – the 3rd millennium BC (The planet mercury, 2013). These Greek astronomers believed even then that Mercury (and Venus) both orbited the Sun, and not the Earth. Mercury was the god of commerce, travel, and thievery in Roman mythology, hence the naming of Mercury. Slide 2 Early beliefs of Mercury Mercury was known since at least Sumerian times roughly 5,000 years ago, where it was often associated with Nabu, the god of writing (Mercury, the sun's, 2013). Mercury was also given separate names for its appearance as both a morning star and as an evening star (Mercury, the sun's, 2013). Early beliefs thought that perhaps there were two different planets. However, Greek astronomers knew that both names referred to the same planet (Mercury). Back in the nineteenth century, astronomers made very careful observations of Mercury's orbit, but they could not explain the orbit adequately using Newtonian mechanics (The planet mercury, 2013). There were discrepancies between what they observed and what was mathematics predicted. This problem would last for decades. Einstein's General Theory of Relativity correctly predicted the motions of Mercury;......

Words: 2548 - Pages: 11


...Jaimin Modi George Triarchou Monica Balbuena Shuyuan Qiu RE: Mercury Athletic valuation and acquisition recommendations We believe that Mercury is an appropriate target for AGI since an acquisition can be an excellent growth opportunity. First, through the acquisition AGI can take the advantages of some existing synergies. Acquiring Mercury would expand AGI’s business size and consequently produce the “one plus one is greater than two” effect. This acquisition would double AGI’s revenues, increase its leverage with contract manufacturers, and also help to expand its presence with key retailers and distributors. Moreover, if negotiated well, AGI could acquire Mercury for a lower price than the actual price of Mercury; earning more than what they’ve paid. This will be discussed further in the recommendation. Secondly, acquiring Mercury is a lower risk way for AGI to increase their growth rate. Mercury has a high growth rate of revenue, which may compensate for the low growth rate of revenue for AGI. Further, since the women’s casual line is going to be closed or consolidated, the rest of the three segments of Mercury show prosperous future prediction in margins and growth. This reflects a good acquisition opportunity. Finally, acquainting Mercury is ease of integration. This is because Mercury and AGI both are the footwear industry. And the main products of Mercury are athletic and casual footwear that are similar with AGI’s products. Both of......

Words: 1032 - Pages: 5

Mercury Pollution

...Consequences of Mercury Pollution Coming in Contact with Mercury People can come in contact with mercury in a number of ways. There is increased risk of mercury exposure in the dental, health and chemical industries. People are also at risk of consuming an unsafe amount of mercury if they eat certain things in excess amounts, such as more than 6 ounces of albacore tuna per week, or over 12 ounces of fish like shrimp, canned tuna, salmon, pollock or catfish. Exposure to mercury can cause brain damage, kidney damage, lung damage and various digestive system problems (McCoy). Perhaps the person most vulnerable to mercury poisoning is the pregnant woman and her unborn fetus. Trauma caused to infants and children as a result of mercury exposure is exponentially worse than it would be an adult. In most cases, it causes severe nervous system problems. Exposure A EU study found that “between 1.5 and 2 million children in the EU are born each year with MeHg exposures above the safe limit of 0.58µg/g and 200,000 above the WHO recommended maximum of 2.5µg/g” (Sunderland). Exposure to MeHg in these amounts affects brain development. Stunted brain development leads to a lower IQ. A low IQ lessens one’s earning power. When just looking at the European Union, the consequences are of paramount importance. In the study, Prof Philippe Grandjean explained, "If we convert the effects of MeHg on developing brains into IQ points then the benefits of controlling MeHg......

Words: 826 - Pages: 4


...The article “Our Preferred Poison” in the March 2005 issue of Discover magazine brings up the issue dealing with mercury poisoning. The author, Karen Wright, writes, “Mercury is unimaginably toxic and dangerous. A single drop on a human hand can be irreversibly fatal. A single drop in a large lake can make all the fish in it unsafe to eat.” This was the opening statement in the article which first grabbed my attention, because I had not thought mercury to be such a deadly substance. After all, it is used in thermometers, so I hadn’t thought it to be as fatally toxic as Wright claims it to be. The people with the most risk of damage by mercury are unborn fetuses and children. Studies seem to show that the metal has the most negative effect on the developing brain, opposed to the mature adult brain. Some scientists speculate mercury could be the cause of autism, mental retardation, cerebral palsy, and Parkinson’s disease, amongst others. I don’t know how accurate or credible these studies are though. Throughout the article Wright states that no one is sure how little mercury can be ingested before the human body shows signs of poisoning. What scientists do know is the amount of mercury the human body cannot ingest. They found this out due to accidental ingestions of various people throughout the world. The article mainly focuses on two types of mercury: methylmercury, which is found in most of the fish, and other seafood’s we eat, and alloys, call......

Words: 254 - Pages: 2


...manometers, sphygmomanometers, and float valves and other things that have mercury on should be disposed properly. Avoid throwing them in rivers for mercury is toxic and poisonous. Mercury * Mercury is a chemical element with symbol Hg and atomic number 80. It is commonly known as quicksilver and was formerly named hydrargyrum. * Mercury poisoning can result from exposure to water-soluble forms of mercury (such as mercuric chloride or methylmercury), inhalation of mercury vapor, or eating seafood contaminated with mercury. * Mercury is used in thermometers, barometers, manometers, sphygmomanometers, float valves, mercury switches, mercury relays fluorescent lamps and other devices, through concerns about the element's toxicity have led to mercury thermometers and sphygmomanometers being largely phased out in clinical environments in favour of alternatives such as alcohol- or galinstan-filled glass thermometers and thermistor- or infrared-based electronic instruments. Mercury can be found in four different forms: * Mercury metal, which is a silver-gray liquid, is harmful to humans when it is exposed into the air and consequently breathed into the lungs. * Methylmercury "may be taken into the body by eating certain saltwater and freshwater fish, especially larger fish at the top of the food chain, such as shark, swordfish, largemouth bass, and chain pickerel." * Inorganic mercury compounds can be found in batteries, over the counter drugs, ointments,......

Words: 2359 - Pages: 10

Mercury Footwear

... F745 Valuation and Capital Investments Assignment 2 | Contents Mercury Footwear 1 Appendix A-1 Mercury Footwear Question 1 We think that this acquisition makes sense for AGI, for a number of reasons. First, the Mercury product portfolio gives AGI access to growing markets that they have not had access to in the past. Specifically, Mercury’s products have become popular with a loyal market of extreme sports enthusiasts that has seen recent sales growth. This could be a nice complement to AGI’s current brand, which is associated with a prosperous, active lifestyle. Just as importantly, there are potential synergies related to manufacturing. As mentioned in the case, there has been a recent wave of consolidation among Chinese contract manufacturers (used by both AGI and Mercury) that has been to the disadvantage of smaller companies. Acquiring Mercury would roughly double AGI’s revenues and allow them to offer longer production runs, build stronger relationships and negotiate better terms with their current manufacturers. There is further potential to consolidate suppliers and reduce the number of staff needed for on-site monitoring, creating efficiencies and cost reductions in the process. Additionally, numerous factors (proliferation of brands, underperforming lines) have served to strain Mercury’s infrastructure recently. AGI could potentially unlock some untapped value at Mercury by focusing on performing brands and winding down unprofitable segments......

Words: 1819 - Pages: 8

Mercury Case

...1) Is Mercury an appropriate target for AGI? Why or why not? Explain. It can be recommended that Mercury could acquire AGI. Revenues of AGI ($470,286) and Mercury ($431,121) are somewhat similar, so acquiring Mercury will increase the sales. In addition, the remarkable part of the Mercury’s revenue comes from athletic shoes segment whereas AGI positions itself as a brand for more casual footwear. Thus, acquiring a brand specialized in a segment in which AGI is some kind of weak, might be a wiser decision. Moreover, by acquisition AGI can expand its distribution channels. Mercury spends lower amount of capital to production, acquiring may lower the production costs of AGI. In that case AGI can decrease its prices to some extent and relieve the pressure from suppliers and competitiors. 2. Review the projections formulated by Liedtke. Are they appropriate? How would you recommend modifying them? Justify. They are appropriate to some extend. However, assumptions that they made may not be come true. Especially, the one that winding down the women’s casual footwear within one year. 3.Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections. Be prepared to defend additional assumptions you make. Rd=6% T=40% Wd=20% We=80% WACC= wdxrd(1-T) + wsrs rs=rRF + (rM- rf)xb Assumptions: b= industry average= 1.5578 rM= industry average=9.7% rRF= US Treasury(10-20 years maturity)=4.83% rs=4.83 + (9.7 -4.83)x1.5578 =......

Words: 325 - Pages: 2

Mercury Case

...1. Do you think Mercury is an appropriate target for AGI? Why or why not? Mercury is an appropriate target for AGI. AGI is looking to increase its revenue and profit by utilizing synergies. The initial aim of AGI for acquiring Mercury Athletics is to increase leverage with contract manufacturers and to boost the cooperation with the retailers and distributors. AGI was one of the most profitable and successful companies in the market segment, but the firm’s size re mained rather small in comparison with the main competitors. Therefore, with the acquisition of Mercury, AGI planned to build competitive advantage. Besides, the target company had well developed operation infrastructure, impressive labor facilities in China and numerous possibilities in reaching the markets in Asia. 2. Review Liedtke’s projections stated in the case. Are they reasonable? How would you rec ommend modifying them? [Hint: Calculate ratios and margins for the projections and compare these to the historical relationships.] Mercury’s EBIT margin for 2006 was 9.8%. Liendke’s 2007 projected EBIT reflects a conser vative increase in EBIT of 9% compared to the average industry growth rate of 10%. According to the forecast for 2007 to 2011, the company is forecasted to show gradual and stable growth of consolidated income from $479.3 million to $597.7 million. This growth rate was estimated by assuming that men’s athletic department sales will be declining from 15% in 2007 to 5% in 2011. Similar......

Words: 1917 - Pages: 8


...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. West Coast Fashions, Inc. (WCF), a large designer and marketer of men’s and women’s branded apparel had recently announced plans for a strategic reorganization. The plan called for a divestiture of certain non-core assets and a renewed focus on WCF’s higher-end business, business-casual, and formal-wear apparel businesses. One of the divisions WCF intended to shed was Mercury Athletic, its footwear division. Liedtke knew that acquiring Mercury would roughly double Active Gear’s revenue, increase its leverage with contract manufacturers, and expand its presence with key retailers and distributors. He also expected that Active Gear’s bankers would quickly approach the company about a possible bid for Mercury; consequently, he wanted to complete his own rough evaluation of the opportunity before hearing the bankers’ pitch. Athletic and Casual Footwear Industry Footwear was a mature, highly competitive industry marked by low growth, but fairly stable profit margins. Despite the industry’s overall stability, the performance of individual firms could be quite volatile as they vied with one another to anticipate and exploit fashion trends. The market for athletic and casual shoes......

Words: 5156 - Pages: 21


...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 including an increase in Active Gear’s revenue, an increase in leverage with contract manufacturers, boosting capacity utilization and expanding its presence with retailers and distributors. Upon the review of the opportunity to acquire Mercury Athletic Footwear, the results of the financial analysis below indicate Active Gear should proceed with the acquisition. Based on the Free Cash Flow Method, considering the financial projections and assumptions for Mercury Athletic, indicate the acquisition has a positive net present value of $112,778,000 [Present Value of Future Cash Flows (59,440,000) + Terminal Value ($276,921,000) – Purchase Price ($223,583,000)]. There are also possible synergies that could make the project even more financially favorable, which are discussed below in the analysis. Introduction John Liedtke, the head of business development for Active Gear, Inc. is responsible for developing the financial projection for the acquisition of Mercury Athletic. Below is a......

Words: 1418 - Pages: 6