Publications
Publications
- September 2009 (Revised June 2011)
- HBS Case Collection
Mercury Athletic: Valuing the Opportunity
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
Mergers ＆ Acquisitions; Sensitivity Analysis; Cost of Capital; Restructuring; Valuation; Cash Flow; Mergers and Acquisitions; Corporate Finance; Apparel and Accessories Industry
Citation
Luehrman, Timothy A., and Joel L. Heilprin. "Mercury Athletic: Valuing the Opportunity." Harvard Business School Brief Case 094-050, September 2009. (Revised June 2011.)