Running head: INVESTMENT ALTERNATIVE BENCHMARKING
Investment Alternative Benchmarking
Shurell Y. Davis
University of Phoenix
Investment Alternative Benchmarking
John Lin, Shang-wa Electronics founder and CEO, is interested in partnering with Bernard Lester, Lester Electronics Inc. founder and CEO, in manufacturing capacitors in Asia. “Recently, John has informally suggested to Bernard that they partner to establish a new capacitor manufacturing facility in a neighboring Asian country” (University of Phoenix, 2008, p. 2). The purpose for partnering with Bernard Lester is to train him to takeover Shang-wa within the next few years. John Lin is aware if Shang-wa is not managed successfully that the company could be acquired by another. If the price of a firm’s stock drops too low because of poor management, the firm may be acquired by another group of shareholders, by another firm, or by an individual. This is called a takeover. (Ross et.al., 2005, p 16).
An organization making a decision to merge and acquire another organization involves legal procedures in order to successfully merge and acquire another organization. “There are three basic legal procedures that one firm can use to acquire another firm: (1) merger or consolidation, (2) acquisition of stock, and (3) acquisition of assets” (Ross et.al., 2005, p. 797). Another important aspect of mergers and acquisitions involves benchmarking other organizations that have successfully completed the merger and acquisition process such as IGM Financials. “IGM Financial announced that it will acquire the remaining Saxon common shares not already tendered under the compulsory acquisition procedures of the Business Corporations Act (Ontario)” (Marion, 2008, ¶ 2). Aluminum Precision Products, Inc. is another organization that has successfully acquired Kaiser Aluminum.
Aluminum Precision Products, Inc. (A.P.P.), the industry leader in aluminum and titanium forged and machined components in a...