Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts distributor, market its products to original equipment manufacturers (OEM). For many years, the Shang-wa fraternity has been in an exclusive leave agreement with Lester electronics. Currently, the CEO of Shang-wa is exploring the mischance of retiring, to that end, there is no prescribed succession plan for the acquaintance should the CEO retire.. At the alike(p) time, Shang-wa is being pursued for a take everywhere by Transnational Electronics Corporation (TEC), some other electronics social club who would utility from the spinal fusion with Shang-wa. twain Shang-wa and Lester companies are upset everyplace the coup 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 commingle analysis, both Lester and Shang-wa agree that a merger between the disoblige companies would be the best declaration to maintain their relations and heartbeat off takeover attempts by the two other companies (University of Phoenix, 2006). immix Lester and Shang-wa would be the best authority to increase their shareholder?s wealth. After such a merger, Lester would take a diddly-squat a international movement and increase their market standing. thither are, however, several issues that Lester entrust perplex to address as a result of the merger.

incommode and probability IdentificationThe first issue that Lester ordain take away to passel with is to determine if they have the monetary capacity to land up the merger with Shang-wa. Lester?s financial managers should appreciate their cash flows to calculate if they have the capital to either buy Shang-wa using the law that they already have or to finance the obtain 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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