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 companionship has been in an exclusive supply agreement with Lester electronics. Currently, the CEO of Shang-wa is exploring the contingency of retiring, to that end, there is no formal succession plan for the acquaintance should the CEO retire.. At the same time, Shang-wa is being pursued for a take everywhere by Transnational Electronics Corporation (TEC), another(prenominal) electronics social club who would benefit from the spinal fusion with Shang-wa. both Shang-wa and Lester companies are upset over the putsch possibility. Should the hostile takeover take place, Lester would lose 43% of their revenues and Shang-wa as a supplier. Lester Electronics is in any case being pursued for a possible takeover by Avral Electronics. After a coalesced analysis, both Lester and Shang-wa agree that a merger between the devil companies would be the best ascendant to maintain their relations and rhythm off takeover attempts by the two other companies (University of Phoenix, 2006). integrate Lester and Shang-wa would be the best government agency to increase their shareholder?s wealth. After such a merger, Lester would take a shit a international mien and increase their market standing. There are, however, several issues that Lester entrust brook to address as a result of the merger.

incommode and opportunity IdentificationThe first issue that Lester will sustain to passel with is to determine if they have the monetary capacity to complete the merger with Shang-wa. Lester?s financial mana gers should evaluate their cash flows to see! if they have the capital to all buy Shang-wa using the equity that they already have or to finance the secure 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.net

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