Lester Electronics Gap Analysis

Paper Summary:

This paper discusses how, by acquiring Shang-Wa, Lester Electronics, Incorporated (LEI) opens up opportunities for expanding in the global market. The paper explains how the decision to do so must include a plan that adds the greatest value while mitigating risk to the shareholders. The paper also shows how the merger must look at needs for wealth maximization, identify medium-term financing alternatives and analyze long-term financing instruments. The paper includes tables of information on this issue and opportunity identification, stakeholder perspectives and end-state goals.

Outline:
Situation Analysis
End-State Vision
Gap Analysis
Conclusion

From the Paper:

"LEI's Board of Directors has recommended a merger with Shang-wa Electronics. To structure this financial plan appropriately, the decision must include a plan that adds the greatest value while mitigating risk to the shareholders. The plan must include options that will align the firm's growth with maximizing shareholder value. LEI has the opportunity to merge with Shang-wa Electronics to secure market share and increase profitability. LEI has the opportunity to select the right capital-structure that will maximize the value of the firm and provide the most benefit to the stockholders."

Sample of Sources Used:

• Alternatives for financing international transactions. (2002). Retrieved January 18, 2009 from http://www.aem.org/News/AEMNews/Details.asp?P=194
• Business financing. (2006). Retrieved January 18, 2009 from http://www.bostonapartments.com/loans/100-business-financing.html
• Finance - frequently asked questions. (2009). Retrieved January 18, 2009 from http://www.smallbiz.nsw.gov.au/smallbusiness/Starting+in+Business/Finance/Finance+FAQ/
• Foltz, J. & Wilson, C.. (2007). The lease versus buy decision. Feed and grain. Retrieved January 17, 2009 from http://www.allbusiness.com/agriculture-forestry/animal-production-cattle/4497573-1.html
• Ross, S.A., Westerfield, R.W., Jaffe, J. (2005). Corporate Finance (7th edition). New York: TheMcGraw-Hill Companies.

More papers on Lester Electronics Gap Analysis:

• Analytical Essay # 136985 : "Lester Electronics Mergers and Acquisitions"
• Case Study # 110340 : "Case Study: Lester Electronics"
• Case Study # 129021 : "Lester Electronics-Shang-Wa Merger"

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