Midland Case Essay example

1862 Words Apr 9th, 2012 8 Pages
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 remained 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
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ting 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 | 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 | 11,983 | 12,226 | 13,303 | 14,258 | 14,943 | Estimated Depreciation | 9,587 | 9,781 | 10,643 | 11,406 | 11,954 |

Combined: Operating Results: | 2007 | 2008 | 2009 | 2010 | 2011 | Revenue | 479,329 | 489,028 | 532,137 | 570,319 | 597,717 | Less: Divisional Operating Expenses | 423,837 | 427,333 | 465,110 | 498,535 | 522,522 | Less: Corporate Overhead | 8,487 | 8,659 | 9,422 | 10,098 | 10,583 | EBIT | 47,005 | 53,036 | 57,605 | 61,686 | 64,612 | Less: Taxes | 18,802 | 21,214 | 23,042 | 24,675 | 25,845 | NOPAT | 28,203 |

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