Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Future
Ronald Perelman’s New York City-based MacAndrews & Forbes Inc. owns about 78 percent of Revlon. Perelman is Revlon’s chairman of the board. There are rumors that Perelman may want to sell Revlon. Analysts say Revlon’s EBIT margins, on average, are good at 19 percent, but the company’s market capitalization to EBIT ratio of just 9.6 is substantially below the 13.3 average ratio for eight of its global peers. Some analysts report that global consumer companies would be the most likely interested in buying Revlon, such as Procter & Gamble Co. and L’Oreal. Revlon would be complementary to P&G’s CoverGirl business. Unilever NV and even Coty, Inc. are among others that could be interested in Revlon. For any firm to obtain the highest acquisition ...
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