Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts distributor, marketing its products to original equipment manufacturers (OEM). For many years, the Shang-wa company has been in an exclusive lend agreement with Lester electronics. Currently, the CEO of Shang-wa is exploring the disaster of retiring, to that end, there is no established succession plan for the acquaintance should the CEO retire.. At the equivalent time, Shang-wa is being pursued for a take everywhere by Transnational Electronics Corporation (TEC), other electronics social club who would realize from the spinal fusion with Shang-wa. both(prenominal) Shang-wa and Lester companies are upset oer the coup detat possibility. Should the hostile takeover take place, Lester would lose 43% of their revenues and Shang-wa as a supplier. Lester Electronics is similarly being pursued for a possible takeover by Avral Electronics. After a conflate analysis, both Lester and Shang-wa agree that a merger between the goliath companies would be the best declaration to maintain their relations and beatnik off takeover attempts by the two other companies (University of Phoenix, 2006). mix in Lester and Shang-wa would be the best behavior to increase their shareholder?s wealth. After such a merger, Lester would take a cop a international battlefront and increase their market standing. thither are, however, several issues that Lester entrust get hold of to address as a result of the merger.

incommode and probability IdentificationThe first issue that Lester impart present to passel with is to determine if they have the monetary capacity to carry through the merger with Shang-wa. Lester?s monetary managers should estimate their cash flows to uplift if they have the capital to either buy Shang-wa using the fair-mindedness that they already have or to finance the acquire with debt. During this evaluation, Lester should evaluate the measure of the cash flows. If Lester decides to purchase Shang-wa using any debt, the financial managers will... If you take to get a full essay, order it on our website: Orderessay

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