This website uses cookies to ensure you have the best experience. Learn more

Lester Electronics Financial Alternative Benchmarking Essay

1031 words - 4 pages

KEG Electronics Group (KEG)The merger of the Kimball Electronics Group (KEG) and Reptron Manufacturing Services (RMS) was benchmarked for its LEI and SwE similarities. KEG originated in 1961 as a manufacture of electronic organs. In the latter part of 1980, KEG exclusively provided electronic manufacturing contract services. KEG designs, engineers, packages and distributes its electronic assemblies and circuit boards. KEGs’ U.S., European, and Asian, operating facilities, equipment, and product offerings have been touted as state-of-the-art. KEGs’ operational goal has been to be globally profitable as its industry’s leading electronics manufacture. Maintaining long-term intimate OEM customer relationships by the provision of superior, diverse technologically advanced value added services and products has given KEG the competitive advantage.To further its industry edge KEG acquired Reptron Manufacturing Services (RMS) in 2007. KEGs’ manufacturing arena expanded its product offerings. The globally recognized KEG serviced the medical, industrial, public safety and automotive industries as the leading durable electronics manufacturer of vastly complex and vital product offerings. KEGs’ corporate core competencies (CCC) included tiger teams for the introduction of new products (NPI), transfer of work (TOW), lean, six sigma and IT integration (KEG, 2006).Reptron Manufacturing Services Inc., (RMS)In January 2007 to further its global footprint KEG acquired the Florida based Reptron Manufacturing Services (RMS). RSM was an EMS provider, servicing the North American medical and industrial electronics industries with complete medical device manufacturing solutions. In 2007, RSM year-end sale revenues were a reported 38.9 million. Renowned and awarded for its innovation and technology RMSs’ product offerings include display integration and engineering services, with complex circuit board assembly, and full electronics manufacturing (Reptron, 2006). KEG was listed as purchasing RSM at 0.68 cents per share; this would have been a 28% premium on RSM's documented 0.53 cents three-month average stock price (yahoofinance, 2008). The stipulations and conditions of this merger stated that KEG fund a cash tender offer for RSMs’ outstanding senior secured notes due 2009 to be successful completed at 12.5 percent discount to par value. Once initiated by RMS on Dec. 22, withstanding KEGs’ waiver this offer was subject to a 97% minimum acceptance. In addition, RMS previous debt would be assumed by KEG (PR newswire, 2006). The acquisition of RSM included four manufacturing facilities located in California, Florida, Michigan, and Minnesota, each facility was granted access to KEGs’ CCCs’. This acquisition increased KEGs’ intellectual capital roster merging more than 1200 RMS engineering, management and frontline employees into KEGs’ fold (Reptron, 2006).American Capacitor Corporation (ACC)The privately held...

Find Another Essay On Lester Electronics Financial Alternative Benchmarking

Problem Solution: Lester Electronics Essay

5324 words - 21 pages greater than the value of the present resources sacrificed. Shareholders want LEI's management to utilize financial leverage to increase returns on common stockholder's equity. Additionally, stockholders are looking for an increase in stockholders' equity caused by profitable operations.Problem StatementForming a problem statement for Lester Electronics will be critical portion of Lester's problem-solving method. The problem statement should be

Gap Analysis: Lester Electronics

2358 words - 9 pages that Lester and Shang-wa both face. As a result, the companies must announce their proposed merger as soon as possible to head off any future offers or possible hostile takeovers from either Transnational Electronics Corporation (TEC) or Avral Electronics. An immediate announcement will also create an opportunity for Lester and Shang-wa to combine their assets and use this as a financial lever for increased funding. As it stands, Lester has a bond

Lester Electronic-Problem Solution

5205 words - 21 pages capacitors are well known in the U.S. market that is why Transnational Electronics Corporation, a large manufacturer and distributor of electronics components wants to acquire Shang-wa. On the other hand, Avral Electronics equipment and component parts manufacturer headquartered in Paris wants to acquire Lester, because they want to market their product in the U.S. market (UOP, 2007).What is Financial Planning?Financial planning is the method in

Problem Solution: Lester Electronics, Inc MBA 540 week 6

2593 words - 10 pages Stockholders Customer Fairness Table 3Analysis of Alternative SolutionsTable 4Risk Assessment and Mitigation Techniques Risk Assessment and Mitigation Techniques Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques Doing nothing and transnational completing a hostile takeover Hostile takeover occurring. This will put Lester Electronics into financial distress High Probability High Probability To

Financial Analysis of Alternatives to Different Companies

4433 words - 18 pages wise decisions from a business perspective. John Lin wants Bernard Lester to take over Shang-wa completely. In theory, the merger would make sense; however, Shang-wa recently acquired large amounts of debt to purchase capital equipment. Lester Electronics Inc. is not strong enough financially to take on those types of liabilities. The projected financial statement of the consolidated organization does not show a promising future.Lester Electronics

Essay examining American Beauty and Little Miss Sunshine to a smaller degree, and the effective film codes used.

1149 words - 5 pages the callous business world is a dominant reading of the film there are other alternative readings. One being that Lester is selfish character, who out of boredom chooses to quit his job and fulfil his childhood dream of owning a `1970 Pontiac Firebird'. His actions subsume the lives of both him and Carolyn, who is now the self-proclaimed `sole breadwinner'. This reading could be possible within people of a different cultural and social

Gap Analysis: Lester Electronics

3252 words - 13 pages value versus maximizing stockholder interests. Lester Electronics, Inc. (LEI), has the exclusive rights to sell Shang-Wa capacitors in the United States. Shang-Wa is LEI's primary supplier for US markets. This opportunity allows LEI the rights to acquire Shang-Wa to increase organizational capacity as well as financial stability. Acquisition of assets: "acquiring another firm by buying all of its assets"(Ross-Westerfield-Jaffe, 2004, p. 798

Description of the process of public sector benchmarking. essay has an irish bias

1676 words - 7 pages for exchanging information, especially where one is dealing with cross boundary tendering or potential competitors. The involvement of senior management and end users is vital in that studies have consistently shown that on average, organisations in which senior management vigorously supports benchmarking, more consistently gain operational benefits and see higher financial paybacks than do other organisations.Data collection is not enough - it

Gap Analysis: Lester Electronics

3603 words - 14 pages ; (Zanders, 2006).ReferencesAnonymous. (2008). Scenario One: Lester Electronics. Retrieved July 12, 2008, from https://ecampus.phoenix.edu/secure/aapd/gbam/xmba540scenario1/startinglink.aspBrigham, E.F. & Ehrhardt, M.C. (2005). Financial Management: Theory and Practice. (11ed.) South-Western Thomson Corporation.Cohen, J.B., Zinbarg, E.D., & Zeikel, A. (1987). Investment Analysis and Portfolio Management. (5th ed.) Homewood, IL: Irwin.Eun

Lester Electronics Problem Solution

4317 words - 17 pages IdentificationIssueOpportunityReference to SpecificCourse Concept(Include citation)ConceptLester Electronics and Shang-Wa Electronics will have to come together and consolidated their financial plan, this will create a win win situation. Lester and Shang-Wa can alleviate the financing costs of the merger by retaining earnings, issuing stocks and bond this method will allow them to raise extra money to help pay for the merger."Financial planning formulates the method by which

MBA/540 – Maximizing Shareholder Wealth

1934 words - 8 pages Problem Solution PAGE \* MERGEFORMAT 9 Running head: MERGER-SHANG-WA ELECTRONICSProblem SolutionTabitha W. PurifoyUniversity of PhoenixWeek Six - November 3, 2008MBA/540 - Maximizing Shareholder WealthBill StokesBased on the scenario for Lester Electronics, Inc. we determined the company is heading in a new direction. Implementing the new vision began with the decision to merge LEI and Shang-Wa and will trickle down to employees to increase

Similar Essays

Lester Electronics Financing Alternative Benchmarking Mba 540 Week 5

5727 words - 23 pages Financing Alternative Benchmarking PAGE \* MERGEFORMAT 1 Financing Alternative BenchmarkingCathy BillingsleaLisa Chomko-MurphyJenna Moye'Nitin SoniDesirae WislerUniversity of PhoenixFinancing Alternative BenchmarkingMerging Lester Electronics, Inc. (LEI) and Shang-wa Electronics requires financing options. Needs, such as investment financing, medium-term and long-term investment options, must be planned in accordance with the operations and

Lester Electronics Financing Alternative Benchmark Essay

6139 words - 25 pages Lester Electronics, Inc PAGE 1 Lester Electronics Financing Alternative BenchmarkLester ElectronicsFinancing Alternative BenchmarkMBA 540 - Maximizing Shareholder WealthLester Electronics Financing Alternative BenchmarkIntroductionIt has become a popular trend in corporate America to start, merge and/or acquire companies. This trend has become so popular due to the different models of business formations to choose from and the many choices

Gap Analysis: Lester Electronics 2347 Words

2347 words - 9 pages action that is in the best interest of the organization. This option was selected above remaining an independent firm or accepting the buyout offer from Avral Electronics. Lester Electronics' financial team now needs to develop a plan for the venture to occur. The merger will create opportunities in the world market as Lester expands its boarders into other countries. With this decision Lester Electronics must now move to establishing a financial

Lester Electronics Wealth Maximization Concepts Worksheet

897 words - 4 pages instance, Transnational (TEC) wants to acquire Shang-wa. Losing Shang-wa will decrease Lester’s Electronics revenues. Avral has approach Lester Electronics with buyout options.Avral and TEC are in good financial standing to takeover both companies. Avral revenue is estimated around $900 million dollars. Whereas TEC has maneuver enough resources from recent mergers and acquisition to maximize its wealth.In order to maximize wealth from the