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  • September 2009 (Revised June 2011)
  • Case
  • HBS Case Collection

Mercury Athletic: Valuing the Opportunity

By: Timothy A. Luehrman and Joel L. Heilprin
  • Format:Print
  • | Pages:14
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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.)
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Related Work

    • September 2009
    • Faculty Research

    Mercury Athletic: Valuing the Opportunity (Brief Case)

    By: Timothy A. Luehrman and Joel L. Heilprin
    • September 2009
    • Faculty Research

    Mercury Athletic: Valuing the Opportunity Teaching Note Exhibits, Faculty Spreadsheet Supplement (Brief Case)

    By: Timothy A. Luehrman and Joel L. Heilprin
    • September 2009 (Revised June 2011)
    • Faculty Research

    Mercury Athletic: Valuing the Opportunity Case Exhibits, Spreadsheet Supplement (Brief Case)

    By: Timothy A. Luehrman and Joel L. Heilprin
Related Work
  • Mercury Athletic: Valuing the Opportunity (Brief Case) By: Timothy A. Luehrman and Joel L. Heilprin
  • Mercury Athletic: Valuing the Opportunity Teaching Note Exhibits, Faculty Spreadsheet Supplement (Brief Case) By: Timothy A. Luehrman and Joel L. Heilprin
  • Mercury Athletic: Valuing the Opportunity Case Exhibits, Spreadsheet Supplement (Brief Case) By: Timothy A. Luehrman and Joel L. Heilprin
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