Lester Electronics

Paper Summary:

This paper analyzes a merger between Lester Electronics and Shang-wa Electronics. The paper maintains that the merger between the two companies must consider needs for wealth maximization, identify medium-term financing alternatives, and analyze long-term financing instruments. The paper then identifies the issues and opportunities present with such a merger, looks at stakeholder perspectives and possible ethical concerns. After discussing financing options, the paper concludes that Lester Electronic's merger with Shang-wa has positioned the company as an industry competitor that has maximized the value for both longevity of Lester Electronics and its shareholders.

Table of Contents:
Introduction
Situation Analysis
Issue and Opportunity Identification
Stakeholder Perspectives/Ethical Dilemmas
Problem Statement
End-State Vision
Alternative Solutions
Analysis of Alternative Solutions
Risk Assessment and Mitigation Techniques
Optimal Solution
Implementation Plan
Evaluation of Results
Conclusion
Table: Issue and Opportunity Identification
Table: Stakeholder Perspectives
Table: Risk Assessment and Mitigation Techniques
Table: Optimal Solution Implementation Plan
Table: Evaluation of Results

From the Paper:

"Stakeholders that will benefit from this merger include shareholders, Lester and Lin, the Board of Directors, and customers. A concern for a loss of revenue through poor investment choices and faulty capital budgeting will affect these same stakeholders. Shang-wa shareholders will expect a fair price for their shares or equivalent compensation through the new formed company. LEI shareholders will want to continue to collect returns on their investments."

Sample of Sources Used:

• Ching, C. (2007). What software development projects can learn from the quality revolution. Retrieved January 28, 2009 from http://www.stickyminds.com/sitewide.asp?Function=edetail&ObjectType=COL&Object Id=8597
• Elmaleh, M.H. (2003). The relativity of risk assessment in investment decisions. Retrieved January 22, 2009 from http://www.understand-accounting.net/Relativity of Risk.html
• Finance issues. 2008. Retrieved January 28, 2009 from http://www.easternsuburbsbec.com.au/
• Helms, M.M. and Cengage, G. (2006).Debt versus equity Financing. Encyclopedia of Management. Retrieved January 22, 2009 from http://www.enotes.com/management-encyclopedia/debt-vs-equity-financing>
• McClure, B.(2008). Taking stock of discounted cash flow. Retrieved January 28, 2009 from http://www.investopedia.com/articles/03/011403.asp?partner=answers

More papers on Lester Electronics:

• Term Paper # 125238 : "Lester Electronics"
• Analytical Essay # 136985 : "Lester Electronics Mergers and Acquisitions"
• Case Study # 110329 : "Lester Electronics Benchmarking Solutions"

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