The set of four cases composing the Fur Industry Merger Exercise affords the opportunity for a merger negotiation among students. Three potential buyers (Adams, Jindo [UVA-F-0962], and Lessard [UVA-F-0963]) compete for two potential sellers (Adams and Gallery of Furs [UVA-F-0965]). The cases give detailed financial forecasts for the target firms that are unique to each party. The forecasts form the basis for valuation of the target companies. The merger opportunities are prompted by major competitive changes in the worldwide fur-garment industry and by adverse changes in demand in U.S. fur retailing. The exercise affords insights into the challenges of cross-border acquisitions. Adams is the largest retailer of fur garments in the United States. Publicly, it appears to be a healthy company, but private information reveals a serious erosion in its business. The current turmoil in the industry provides Adams an opportunity either to buy its next largest competitor (Gallery of Furs) or sell to one of two fur-garment producers (Jindo or Lessard). The "Adams" case may be used on a stand-alone basis to illustrate aspects of corporate valuation in a merger setting.