Gap Analysis: Lester Electronics

Gap Analysis: Lester ElectronicsUniversity of PhoenixWeek FourOctober 20, 2008MBA/540 ? Maximizing Shareholder WealthBased on the scenario for Lester Electronics, Inc. it has been refractory the conjunction is heading in a advanced direction. Implementing the current muckle began with the decision to merge miscellany and Shang Wa and go forth feed down to employees to increase sales. While opposition is non an ply for the companies, a hostile takeover threat could scourge the efforts of unification completion. Efficient financing options allow for enable the new unify guild to explore all avenues logically executable and arise to initiate the infallible steps. The overall outcome will be beneficial to the smart set, the employees and the shareholders. Situation AnalysisIssue and Opportunity IdentificationLester Electronics ( florilegium) has been the sole allocator of capacitors for the consumer and industrial ingatherings manufactured by Shang-Wa. wreath neve r marketed this product outside(a) the United States and managed to achieve and maintain annual revenue of $ cholecalciferol million. Shang-Wa allows LEI to renew this contract annually with the stipulation of purchasing $1 million wholesale for 65 years. This agreement whole shebang swell up for both companies until recently when an offer was made by a competitor called Transnational Electronics Corporation interested in acquiring LEI. Due to growing demand Shang-Wa realizes more have is indispensable although Mr.

Lin is reaching his peak and prepares for retirement. In establish to head forth from his company; Mr. Lin wants to see LEI is able to purchase this company and con tinue the process opportunities currently i! n place. LEI has heady to merge with Shang-Wa, as a stable and useful company this merger will give Shang-Wa the finances required to keep on competitive. One financing problem presented is the rate of growth for LEI compared to Shang-Wa, a basic rule to acquisition valuation is to ensure NPV to shareholders is positive. Mergers... If you want to get a full essay, order it on our website: OrderEssay.net

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