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This work evaluates the potential merger between Li Ning and Under Armour, two sportswear
companies. The DCF valuation method reveals upside potential for the shares of these two
companies, with Li Ning showing a 12.85% upside and Under Armour an 8.39% upside. The
proposed merger highlights significant value creation, with synergies boosting the combined
market capitalization by 12.61%, reaching 13.1 billion USD. By merging Under Armourās
established presence in North America with Li Ningās growing dominance in China, the
combined entity is positioned to compete more effectively against industry leaders Nike and
Adidas in the global sportswear market.
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Valuation Synergies Expansion Merger Enterprise value
