Publications
Publications
- 2009
Mercury Athletic Footwear, Inc.: Valuing the Opportunity: Brief Case No. 4050.
By: Timothy A. Luehrman and Joel L. Heilprin
Abstract
In January 2007, West Coast Fashions, Inc., a large designer and marketer of branded apparel, announced a strategic reorganization that would result in the divestiture of their wholly owned footwear subsidiary, Mercury Athletic. John Liedtke, the head of business development for Active Gear, a mid-sized athletic and casual footwear company, saw the potential acquisition of Mercury as a unique opportunity to roughly double the size of his business. 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).
Keywords
Citation
Luehrman, Timothy A., and Joel L. Heilprin. "Mercury Athletic Footwear, Inc.: Valuing the Opportunity: Brief Case No. 4050." Watertown, MA: Harvard Business Publishing Case, 2009.