Suit Wars: Men’s Wearhouse Versus Jos. A. Bank

Please help me read this case and answer these questions:

1. What is the business of each company and what are the synergies between them?

2. What kind of synergies, and their magnitude, do you expect in this merger?

3. Why did Men’s Wearhouse and later Jos. A. Bank resist the offer? How did they do it?

4. What shoud Eminence Capital do at this juncture in the case?

5. How should the offer be financed — cash for stock (and why)? What is the impact on share accrection/dilution?

6. If Men’s Wearhouse decides to pay by cash, how will it obtain $2 billion to pay for the merger? Are there sufficient projected cash flows to pay off the debt?

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