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Mercury Case

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1. Do you think Mercury is an appropriate target for AGI? Why or why not? Mercury is an appropriate target for AGI. AGI is looking to increase its revenue and profit by utilizing synergies. The initial aim of AGI for acquiring Mercury Athletics is to increase leverage with contract manufacturers and to boost the cooperation with the retailers and distributors. AGI was one of the most profitable and successful companies in the market segment, but the firm’s size re mained rather small in comparison with the main competitors. Therefore, with the acquisition of Mercury, AGI planned to build competitive advantage. Besides, the target company had well developed operation infrastructure, impressive labor facilities in China and numerous …show more content…

g Income | 8,345 | 8,512 | 8,682 | 8,943 | 9,211 | | | | | | | Women's Athletic: | | | | | | Revenue | 138,390 | 153,613 | 167,438 | 179,159 | 188,117 | Less: Operating Expenses | 124,302 | 137,976 | 150,393 | 160,921 | 168,967 | 1 of 4 5/9/2012 9:27 PM | | | | | | | | | | | | | | | | | | | Operating Income | 14,088 | 15,638 | 17,045 | 18,238 | 19,150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Women's Casual: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revenue | 36,802 | 0 | 0 | 0 | 0 | | | | | | | | | | | | | | | | | | | | | | Less: Operating Expenses | 37,265 | 0 | 0 | 0 | 0 | | | | | | | | | | | | | | | Operating Income | -463 | 0 | 0 | 0 | 0 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consolidated Revenue | 479,329 | 489,028 | 532,137 | 570,319 | 597,717 | | | | | | Less: Operating Expenses | 423,836 | 427,333 | 465,110 | 498,535 | 522,522 | | | | | Less: Corporate Overhead | 8,487 | 8,659 | 9,422 | 10,098 | 10,583 | | | | | | | Consolidated Operating Income | 47,006 | 53,036 | 57,605 | 61,686 | 64,612 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Estimated Capital Expenditures |

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