Do you have any solution about the Mercury HBS case? There're 5 questions as below:
1. Is Mercury an...

Question

Do you have any solution about the Mercury HBS case? There're 5 questions as below:
1. Is Mercury an appropriate target for AGI? Why or Why not
2. Review the projections formulated by Liedtke. Are they appropriate ? How would U recommend modifying them?
3. Estimate the vaule of Mercury using a discounted cash flow approach and Liedtke's base line case projections. Use additional assumptions as needed, but be prepared to defend them.
4. Do you regard the value you estimated conservative or aggressive? Why?
5. How would you analyze possible synergies or other sources of values not reflected in base-line assumptions?

Tanmoy · Accepted Answer

MERCURY HBS CASE
Table of Contents
Solution 1	3
Solution 2	3
Solution 3	3
Solution 4	4
Solution 5	4
References	5
Solution 1.
Yes, Mercury is an appropriate target for AGI. There are some characteristics which are similar to the footwear industry. Mercury is competitive and matured company. But there is low growth in the company and have high profit margin. Further, the individual company’s performance is volatile in nature as they need to anticipate and exploit various types of fashion trends. Apart from being a global footwear brand, athletic and casual shoes industry which fragmented in nature till now. This means that each organization can have their own market due to this characteristic. Also, the brand image, inventory management and the sales channel which are the departmental stores are the main sources of channel sales.
Solution 2.
It was observed that Liedtke used the historical averages for calculating the overhead to revenue ratio. But is not useful for the future. The growth rates are sometimes negatively correlated in the two periods. Also,

Do you have any solution about the Mercury HBS case? There're 5 questions as below: 1. Is Mercury an appropriate target for AGI? Why or Why not 2. Review the projections formulated by Liedtke. Are...

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