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Running head: PROBLEM SOLUTION: LESTER ELECTRONICS
Problem Solution: Lester Electronics
Mary-Margaret Pierce-Lambert
University of Phoenix
September 28, 2008
Problem Solution: Lester Electronics
We are currently living in difficult times financially speaking. At this moment the housing market, job market and most of all the financial market is in dire straits. Lester Electronics is trying to keep their heads afloat in a time that is very precarious. Since the Board of directors is looking at a merger with Shang-wa, Lester Electronics will need to look at how to finance this merger since they (Lester Electronics) are trying to thwart Transnational Electronics from a hostile takeover of Shang-wa. However Shang-wa is not the only attractive looking either. Avral Electronics has looked at Lester Electronics, for a merger as well.
At this point we shall discuss what options for financing a merger Lester Electronics has with out putting the company into crippling debt, as well as not doing anything that could jeopardize the company as a whole after the merger is completed. Also it would behoove both organizations to make sure that they both adhere to the guidelines set forth by the government, with regards to mergers and acquitions. Otherwise, the merger could be held up and that could spell trouble for Lester Electronics, since it would give Transnational the opportunity to go in and have a hostile takeover.
Situation Analysis
Issue and Opportunity Identification