How would you analyze possible synergies

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Reference no: EM132464304

Task

CASE: Complete Mercury Athletic: Valuing the Opportunity DCF (Given Discount Rate). DO NOT solve for the discount rate using WACC, rather use a given discount rate in the 8% to 12% range.

Also, in the case of Mercury, Your task will be to use valuation concepts discussed to date - as one example, discounted cash flow analysis - to estimate free cash before valuing the target.

COURSE: Corporate Financial Valuation and Decision-Making.

READ TEXTBOOK: Higgins, R. (2015). Analysis for Financial Management, 11th edition. McGraw Hill. ISBN: 978-0077861780. Chapter 9 (up to page 357), "Corporate Valuation and Market Multiples," "Business Valuation: Standard Approaches and Applications," and "Teuer Furniture (B): Multiples Valuation."

Question:

Question 1. Is Mercury an appropriate target for AGI? Why or why not?

Question 2. Review the projections by Liedtke. Are they appropriate? How would you recommend modifying them?

Question 3. Estimate the value of Mercury using a discounted cash flow approach and Liedtke's base case projections.

Question 4. Do you regard the value you obtained as conservative or aggressive? Why?

Question 5. How would you analyze possible synergies or other sources of value not reflected in Liedtke's base assumption?

Attachment:- CASE - Complete Mercury Athletic.rar

Reference no: EM132464304

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len2464304

2/27/2020 9:19:44 PM

Complete Mercury Athletic: Valuing the Opportunity DCF (Given Discount Rate). DO NOT solve for the discount rate using WACC, rather use a given discount rate in the 8% to 12% range. Also, in the case of Mercury, Your task will be to use valuation concepts discussed to date - as one example, discounted cash flow analysis - to estimate free cash before valuing the target.

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