Merger to privatize Nordstrom, an analysis

Heard of Nordstrom being privatized?!An analysis of one of the landmark deals in consumer industry. The report is focused on merger of the mega consumer retailer Nordstrom with Liverpool, a mega department store operating in Mexico that also operates brands under the Banana Republic, GAP, Pottery Barn, West Elm, and Williams-Sonoma names. The report includes detailed analysis of growth drivers of Nordstrom, forecasting methodology used to forecast revenues with merger effects, valuation of Nordstrom using valuation methodologies such as DCF valuation modeling, trading comparables multiples and precedent transactions multiples. Not much is known about the deal in public domain. The report also includes synergy analysis and valuation of synergy. The merger intends to privatize Nordstrom to seize growth opportunities in an efficient manner. 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.