Privatization of Nordstrom

Heard of possibility of Nordstrom being a private company?! In fashionable terms, its called Management Buyout (MBO). I analyzed the merger of the mega consumer retailer Nordstrom with Liverpool. Liverpool is a mega department store operating in Mexico and also operates brands under the Banana Republic, GAP, Pottery Barn, West Elm, and Williams-Sonoma names. Nordstrom has been a heavily undervalued and low performing company. The merger intends to privatize Nordstrom to seize growth opportunities in an efficient manner. One of the challenges in the analysis was forecasting revenue of Nordstrom. Detailed analysis has been conducted to determine the growth drivers of Nordstrom and forecast the revenues with post-merger effects. While the acquisition is valued at $24.25 per share, the analysis provides insights that the acquisition price is only close to the highest 52-week price. Read on for synergies and valuations conducted playing to the strengths of these two mega companies.