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 mulish the guild is heading in a late direction. Implementing the new-fashioned imagery began with the decision to merge garland and Shang-Wa and leave alone filter out pull down to employees to increase sales. While opposition is not an issue for the companies, a hostile takeover threat could keep down the efforts of merger completion. competent financing options will enable the new consolidated gild to explore all avenues logically possible 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 allocator of capacitors for the consumer and industrial reapings manufacture by Shang-Wa. coronal never marketed this product outside the joined States and man aged to achieve and maintain annual tax income of $500 million. Shang-Wa allows LEI to renew this contract annually with the judicial admission of purchasing $1 million wholesale for 65 years. This symmetricalness works intimately for both companies until recently when an offer was make by a competitor called Transnational Electronics Corporation fire in getting LEI. Due to growing demand Shang-Wa realizes more work is required although Mr. Lin is reaching his peak and prepares for retirement.

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

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