FINC025 – MA2022 – T6 – Investment Banking
Takehome Assignment – the Reebok Case
- When the management board of Adidas evaluated strategic options for Reebok, what could have been the reasons for a sale? What could have been reasons to keep Reebok?
- What were potential buyer groups for Reebok? What could have been their investment rationale?
- Please prepare a business plan for Reebok and explain your assumptions. You can use broker projections as provided in the info pack as guidance. Please make sure you explain the logic for your assumptions (e.g. sales growth or EBITDA margin etc). Reference is made to the course moduel „Demystification of the (operational & financial) modeling“.
- Please prepare a valuation of Reebok as of today, using comparables - both public comparables and transaction comparables - as key methodology. As you should show 2022, 2023 and 2024 multiples, you will need to rely on your business plan for Reebok (see above) based on limited financial details using your own assumptions. The backup data as provided is solely used to give you some guidance, you will need to pick the relevant public peers as well as the most comparable past transactions and briefly explain the logic in a bullet or two for each. There may have been additional transactions after the most recent one in the materials. Reference is made to the course module „Deep dive on comps“.
- How does the price paid by Authentic Brands Group LLC compare to your valuation? How do you assess the outcome of the transaction for Adidas?
- Why do you think Authentic Brands Group LLC was able to outbid other interested parties? What could be their value creation plan?
The suggested format of presenting your findings is PowerPoint. Any Excel-based analyses should be pasted into this PowerPoint presentation. Please make sure you only submit one file containing all your work.
As guidance, the presentation should not extend to more than 10-15 pages.
Please refer to the backup materials as provided as a basis alongside your own insights/ research/ analyses. It will obviously be important that you work with the resources from e.g. the ADIDAS webpage and other databases available.
This takeohome assignment, as communicated earlier, will count for 70% of the overall grade for this course with the remainder being class participation.