Valuation of IC Companys A/S

Umar Sandhu & Mark Strøm

Studenteropgave: Kandidatafhandlinger


IC Companys A/S is a Danish fashion corporation, which produces 11 designer labels, which are exported to more than 40 countries all over the world. The company was founded in April 2001 through a merger of the clothing company InWear Group A/S and the fashion company Carli Gry International. The company is one of Northern Europe’s largest fashion corporations. Their products target quality-conscious men and women, primarily in Scandinavia and EU. Each brand targets a special customer segment. The main part of their sale is via 10,500 wholesale distribution points in more than 40 countries. Furthermore, the company has 259 company-owned shops in 13 countries and 22 factory outlets. IC Companys experienced a difficult period of time after the merger in 2001. Several years went by before a satisfying result was achieved. The difficulties consisted of managerial and economical challenges. The company has had changes in management and strategies throughout the last 8 years, which have been a contributing factor to the improved results. IC Companys is a cyclical company, which is relatively influenced by macro/micro-economic fluctuations. The company has had unsatisfactory results within the last 1-2 years, partly due to the downturn in both the economy and clothing industry. The company is operating in a highly competitive market where differentiation is of outmost importance. Their brands are marketed in the mid and high-end price segment. IC Companys has developed a Multi-brand strategy, which in combination with a shared business platform are to increase focus on brand differentiation, customer loyalty, economies of scale and a reduction in costs. The company has had difficulties in attaining their stated growth objectives. A stated growth objective in 2001 was not reached until 2005 and the growth objective for 2006 has not yet been reached. However, a positive and relatively satisfying development in the growth rate has been achieved in the period of 2004/05 to 2007/08. The estimated value of IC Companys and its share price will be revealed in the latter part of the report. The estimates have been based on certain assumptions and through this a recommendation of whether or not to buy shares of IC Companys at the current share price will also be presented in the end of the report.

UddannelserCand.merc.fir Finansiering og Regnskab, (Kandidatuddannelse) Afsluttende afhandling
Antal sider136