Case Study: Financing Lester Electronics Case Study

Case Study: Financing Lester Electronics
Presents a case study that uses situational analysis methodology to seek the best solution to financing Lester Electronics' potential expansion.
# 148694 | 3,130 words | 28 sources | APA | 2009 | US


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Description:

This paper explains that, because of the takeover offers, Lester Electronics must find the right financing option so that it can take advantage of the opportunity to achieve significant growth by merging with Shang-wa Electronics. Next, the author demonstrates the application of situation analysis methodology by identifying the opportunity, articulating the end-state vision, listing and analyzing alternative financing solutions, selecting the optimal solution, developing an implementation plan and evaluating the results. The paper concludes that the best financing plan for acquiring Shang-wa Electronics that also minimizes the risks is to use 50% of the existing cash reserves combined with a stock offering to raise the remaining 50%. Six original tables that summarize the situation analysis are included.

Table of Contents:
Abstract
Introduction
Situation Analysis
Issue and Opportunity Identification
Stakeholder Perspectives/Ethical Dilemmas
Problem Statement
End-State Vision
Alternative Solutions
Analysis of Alternative Solutions
Long-Term Financing Instruments
Medium-Term Financing Alternatives
Mezzanine Financing
Risk Assessment and Mitigation Techniques
Optimal Solution
Implementation Plan
Evaluation of Results
Conclusion
Apendix
Table: Issue and Opportunity Identification
Table: Stakeholder Perspectives
Table: Analysis of Alternative Solutions
Table: Risk Assessment and Mitigation Techniques
Table: Optimal Solution Implementation Plan
Table: Evaluation of Results

From the Paper:

"The critical issue for Lester Electronics is the prospect of company revenues declining 43% over the next five years. Shang-Wa and Lester have received acquisition offers. Transnational Electronics Corporation, a large manufacturer of electronic components, initiated a hostile takeover bid for Shang-wa Electronics. If this takeover is successful, the exclusive distribution agreement will cease resulting in a 43% reduction in Lester's revenues over the next five years. At the same time, Avral Electronics, a global electronic parts manufacturer headquartered in Paris, has expressed an interest in acquiring Lester Electronics."

Sample of Sources Used:

  • Allbusiness. (n.d.). Http://www.allbusiness.com/marketing/market-research/1310-1.html. Retrieved May 30, 2009, from http://www.allbusiness.com/marketing/market-research/1310-1.html
  • Ayers, J. (2003, July 21). Don't get buried in customer data--use it. Retrieved May 12, 2009, from Harvard Business School Web Site: http://hbswk.hbs.edu/item/3596.html
  • Business Finance. (2009, May 16). Mezzanine Finance. Retrieved May 16, 2009, from http://www.businessfinance.com/mezzanine-finance.htm
  • Canada Business. (2009, March 31). Financing your business. Retrieved May 13, 2009, from http://www.canadabusiness.ca/servlet/Satellite?cid=1099919423394&pagename=CBSC_NB%2Fdisplay&lang=en&c=GuideInfoGuide
  • DeVisscher, F. (2006). Finding sources of capitol that won't require control. Family Business Magazine, , 1-2. Retrieved May 16, 2009, from http://www.devisscher.com/articles/24464Finding_sources.pdf

Cite this Case Study:

APA Format

Case Study: Financing Lester Electronics (2011, October 30) Retrieved February 07, 2023, from https://www.academon.com/case-study/case-study-financing-lester-electronics-148694/

MLA Format

"Case Study: Financing Lester Electronics" 30 October 2011. Web. 07 February. 2023. <https://www.academon.com/case-study/case-study-financing-lester-electronics-148694/>

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