MBA/540 – Maximizing Shareholder Wealth

Problem SolutionUniversity of PhoenixWeek Six ? November 3, 2008MBA/540 ? Maximizing Shareholder WealthBased on the scenario for Lester Electronics, Inc. we persistent the guild is heading in a crude direction. Implementing the bran-new imagery began with the decision to merge garland and Shang-Wa and pass on slabber pull down to employees to increase sales. While opposition is not an issue for the companies, a hostile takeover threat could restrict the efforts of merger completion. competent financing options will enable the new consolidated gild to explore all avenues logically workable and proceed to part the needed steps. The overall outcome will be in effect(p) to the follow, the employees and the shareholders. Issue and Opportunity IdentificationLester Electronics ( wreath) has been the sole electrical distributor of capacitors for the consumer and industrial mathematical products manufacture by Shang-Wa. florilegium never marketed this product outside the joined States and managed to achieve and maintain annual tax revenue of $500 million. Shang-Wa allows LEI to renew this contract annually with the cartel of purchasing $1 million wholesale for 65 years. This organization works intimately for both companies until recently when an offer was do by a competitor called Transnational Electronics Corporation elicit in getting LEI. Due to growing demand Shang-Wa realizes more(prenominal) work is required although Mr. Lin is reaching his peak and prepares for retirement.

In tack to walk forth from his companionship; Mr. Lin wants to run across LEI is able to purchase this company and continue the growth opportunities shortly in! place. LEI has heady to merge with Shang-Wa, as a stable and profitable company this merger will allow for Shang-Wa the finances required to bide competitive. One financing enigma presented is the rate of growth for LEI compared to Shang-Wa, a basic persist to acquisition evaluation is to ensure NPV to shareholders is positive. Mergers do not always transpire... If you want to get a full essay, order it on our website: BestEssayCheap.com

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