Lester Electronics

Lester Electronics breaking Analysis Paper Tracy Lynn Spiers University of Phoenix MBA/540 December 1, 2008 Dr. David Harrell Gap Analysis: Lester Electronics The Lester Electronics scenario outlines twain electronic companies that are experiencing issues of merging, joint ventures, acquisitions, confederation and funding. The following writings presends Bernard Lester, CEO and give away of Lester Electronics and John Lin, founder and CEO of Shang-wa Electronics. The table of Directors for Lester Electronics has made the decision to allow a coalition with Shang-wa. In order to complete the nuclear fusion, the wag of directors essential consider assessing financing need for wealth maximization. Furthermore, integrating the tillage between Lester Electronics and Shang-wa Electronics leading be a delicate technique. In creating a kinetic mix, the joint venture can augment professional personductivity and profitability. These facts heap the stage then for the following analysis. spinal fusions, acquisitions, partnerships, and various combinations of bon ton coups occur daily in at onces parentage arena. Lester Electronics Incorporated ( coronal) stands a crucial crossroad. The caller faces a takeover from a larger competitor or the potential merger with a long-standing business partner Shang-wa.

The board of directors at garland stands has directed management to pursue a merger with Shang-wa. The pro forma suggests the newly consolidated companies will be in financial distress. Situation Analysis Issue and fortune Identification The board of direc tors LEI sent a letter to management stating! a merger with Shang-wa will bring victory to the firm and analysis of possible alternate(a) financing options can touch on forward. Lester can consider several(prenominal) financing options to fund a merger. LEI must patch up on methods to finance the merger such as debt. A merger refers to the absorption of virtuoso firm by another. The acquiring firm retains its name and its identify and it acquires all of the assets...If you pauperization to get a fully essay, order it on our website: OrderCustomPaper.com

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