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Mercury Athletic Footwear Case Study: Corporate Valuation
Finance & Accounting
Pages 6 (1506 words)
Mercury Athletic Footwear Case Study: Corporate Valuation First name, last name Subject Professor Submission Date Mercury Athletic Footwear Case Study: Corporate Valuation Takeovers of existing companies and especially a manufacturing company are fraught with uncertainty and a great degree of grey areas.
So John Liedtke would have to be very careful and strategic in his negotiation. This is a company whose growth has been faltering at best and there would be need to not only redesign but to totally restructure it in order to ensure that the expected profitability is achieved. So the negotiating tactic would involve pointing out the reasons that led to the disappointing performance of Mercury and the decision to sell it in the first place. The company has not been pulling its weight in West Coast Fashionsstable, a cat that is borne by its disappointing profit margins (Falk and Hagman 2002). Competition in branded footgear is cut-throat and trying to sell branded sporting footwear is even more tricky as it has to combine the fickleness of fashion apparel with the practicality and purposefulness of sporting wear, a factor that contributed to Mercury’s dismal performance especially in the ladies casual footwear department. Active Gear would have to point this out as a major impediment in their future marketing products that they acquire from the West Coast Fashions group. There is also need to consolidate manufacturers in Asia. ...
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