Gap Analysis Lester Electronics

Running head: GAP ANALYSIS: LESTER ELECTRONICS Gap abridgment: Lester Electronics Mia Randle University of Phoenix Gap Analysis: Lester Electronics In 1978 Lester Electronics, Inc. (LEI) entered into an agreement with Shang-wa Electronics (SE) to develop an goop capacitor distribution contract (University of Phoenix, 2007). The agreement stipulates that SE depart provide LEI the right to sell SE capacitors in the United States for 65 historic period. The agreement requires LEI to sustain a minimum annual purchase of $1 million and in return SE will not sell the capacitors to competitors at heart the United States (University of Phoenix, 2007). The agreement has been in effect for 35 years and has proven to be beneficial to both parties. Recent events entertain required SE and LEI to revisit their current channel arrangement and the management team of LEI must carefully analyze their current financial position and semipermanent goals with the object of creating growth for the company. LEI is currently pursuing a fusion opportunity with SE and seeking appropriate methods of financing the venture. The unification refers to the absorption of one pixilated by another. The acquiring firm retains its name and its identity, and it acquires all the assets and liabilities of the acquired firm.

After a nuclear fusion reaction, the acquired firm ceases to embody as a separate business entity, (Ross, Westerfield & Jaffe, 2005, p.797). With the completion of the merger LEI and SE would establish combined financial and bodied initiatives that will include maximizing shareholder value concurrently meeting to the needs of customers, suppliers and employees. The financing of this purchase will feature a profound impact on the long-term wellness of the company and investor faith in the organization. The facets of this merger must be evaluated and adjusted to maximize shareholder wealth, and properly address long-term and medium-term financing options. Situation Analysis Issue and Opportunity... If you want to get a full essay, order it on our website: Orderessay

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