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C/F/591. Mercury Athletic Footwear: Valuing the Opportunity. Harvard Business School Case study analysis

WORDS:
2050
DATE:
2009
PRICE:
29.99 GBP

This paper is analysing “Mercury Athletic Footwear: Valuing the Opportunity” case study by Luehrman and Heilprin. The paper raises the question of importance of financial valuation a subsidiary during the pre-acquisition period. This step enables the acquiring company to foresee opportunities and threats that may be hidden in the target firm. Thus, the work provides the set of cash flow projections of a footwear company that is about to be acquired. In the course of research the weighted average cost of capital (WACC) has been estimated and terminal value has been determined. The paper also contains the assessment of acquisition premiums and synergies.

 

KEYWORDS: Mercury Athletic Footwear, Harvard case study, WACC, depreciation, cash flow, acquisition, Luehrman, Heilprin,

 
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