Investment Alternative Benchmarking
University of Phoenix
Investment Alternative Benchmarking: Bernard Lester Inc.
Lester Electronics Inc. (LEI) is a firm that distributes electronics parts to local distributors in the Americas and Europe with company revenues totaling approximately $500 million per year. An exclusive distribution contract with a small Korean manufacturer, Shang-wa Electronics, was critical to LEI’s initial success and continues to be worth 43 % of the total revenues for the firm. Recently Shang-wa’s CEO and founder, John Lin, has approached Bernard Lester, LEI’s CEO and founder, to suggest forming a partnership between the two firms in order to meet the growing demand for the niche product that Shang-wa offers. This offer of a partnership with LEI would also help John Lin provide his company with talented management and it would provide an opportunity for him to retire. Since this occurred, Shang-wa has received a proposal from Transnational Electronics Corporation (TEC) who is interested in acquiring them as part of their global expansion plans. In addition, LEI has received a non-disclosure agreement from Avral Electronics, a European company that is looking to expand into the United States.
In order to decide the best direction for these companies to take, various financial issues that the firms are facing will be identified. This paper will also discuss relevant concepts relating to maximizing shareholder wealth and will provide benchmarking research to help determine the best course of action for the firms.
Working Capital Strategies to Maximize Shareholders Wealth
Time Warner, AOL and Turner Broadcasting '
Working Capital Management is one of the keys to achieve healthy cash flow. A firm can efficiently run its organization with the correct working capital management strategy. Accounts receivable and inventory management are key success variables to efficient working capital management. The...