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Gap Analysis: Lester Electronics
Introduction
The media is constantly inundated with news of mergers, acquisitions, partnerships, and various combinations of company takeovers. An individual’s thorough understanding of social and economic development, wealth, prosperity, and longevity begins with understanding the financing aspect of a business based on the consumer needs. The Lester Electronics scenario presents an outline for two electronic companies that are facing issues relating to possible mergers, joint ventures, acquisitions, partnership and financing. After further consideration of possible options, the Board of Directors for Lester Electronics has made the decision to merge with Shang-wa. In making this decision, the board of directors must consider assessing financing need for wealth maximization for a successful merger. Equally important to wealth maximization is the necessity to integrate the cultures of both companies. Although a delicate situation, it is a necessity as the joint venture has the possibility of increasing productivity and profitability. The following paper will successfully identify issues/opportunities, stakeholder perspectives, and end-state goals involved in assessing the financial need for wealth maximization as it relates to the scenario. The paper will also pinpoint medium-term financing alternatives and analyze long-term financing instruments in the merger decision by the board of directors.
Situation Analysis
Issue and Opportunity Identification
Situational analysis involves understanding the issues observed with opportunity to evolve above the issues and help designate distinctive data that helped to initial or create ...