Running head: INVESTMENT ALTERNATIVE BENCHMARKING FOR BERNARD
Investment Alternative Benchmarking for Bernard Lester
University of Phoenix
Maximizing Shareholder Wealth
MBA 540
September 15, 2008
Investment Alternative Benchmarking for Bernard Lester
Introduction
“The income statement measures performance over a specific period of time, say, a year,” (Ross, Westerfield, & Jaffe, 2005, p.4). In the Lester Electronics scenario, Lester,
Electronics, Inc. (LEI) has been presented with an opportunity to acquire or partner with another company, Shang-Wa Electronics, with whom they have done business with for many years. Shang-Wa has had an acquisition offer from another company, Transnational
Electronics Corporation and now must decide what the best move for them will be. LEI must work quickly if they want to acquire with Shang-Wa. If they do not, they know that their revenues would decrease by a large amount. Ann Lorale, CFO for LEI, must look over the company’s income statement and decide if the acquisition would be a wise decision for the company.
Generic benchmarking has been performed to help see how different companies have reacted in similar situations, and whether or not this would be a good move for LEI. These companies have used strategies such as internal and external growth, mergers and acquisitions, hostile takeovers and mergers. Through this benchmarking, these strategies will be explored.
Compare and Contrast Mergers and Acquisitions – LEI, IBM and Intel
Lester Electronics Inc. (LEI) is in a tenuous predicament with the threat of having its relationship with Shang-wa broken and with looming offers of acquisition from AVRAL for LEI and TEC for Shang-wa. The approach tak ...