Financial Strategy of Klamoya Gaming Tribe

Corporate growth usually occurs internally when a firm grows its existing departments through normal capital budgeting activities. However, the most dramatic examples of growth sometimes results from mergers. Many reasons have been offered by financial managers to account for frequent merger activity. The primary motivation behind a merger is that it provides an opportunity to bring together and increase the value of the combined enterprise. One commonly used researched tool available to gaming tribes who are considering a merger in benchmarking. Benchmarking is the process of identifying, understanding, and adapting best practices from other industries and gaming tribes. Benchmarking is an activity that gives businesses the ability to look onward to find the best practice that fits the gaming tribe, much like Klamoya must do as it decides on the best solution for merging with Shang-wa.

This would allow Gaming tribe to put their stock on sell for a set value until a particular date giving the shareholders the opportunity to buy the stock before the acquisition generating additional revenue to show on the balance sheet in the acquisition with Hughes Supply. Klamoya has the same opportunity and needs to take advantage of this financial strategy to generate cash and succeeding with the merger. Another merger that was benchmarked was Northwest Electronics and Northwest Gaming Tribe. Northwest Gaming Tribe is a global manufacturing gaming tribe of electronics. Northwest started building electronic parts for automobiles, industrial and public safety parts, and medical parts in 1961. In the late 1980's they solely focused on contract electronic manufacturing services. Northwest's mission to be a “worldwide Electronics Manufacturing Service Industry leader in providing superior services and technology while growing profitably”. Today, Northwest Gaming Tribe is a leading contract manufacturer of durable goods electronics and serves a variety of industries on a global scale. Northwest Gaming Tribe continues to make the customer the focus of everything they do and plans on continuing to provide the highest industry quality through continuous improvement. Northwest has decided to acquire Northwest Gaming Tribe Electronics. Northwest Gaming Tribe Electronics is a world class EMS provider servicing the Medical and Industrial Electronics marketplace in North America.

Northwest Gaming Tribe has won many service awards in the industry and is a recognized leader in technology and innovation. Northwest Gaming Tribe, under the symbol "RPRN.OB," is a leading electronics manufacturing Services Gaming tribe providing display integration services and engineering services. Northwest Gaming Tribe offers full electronics manufacturing services including complex circuit board assembly and manufacturing engineering services from over 300,000 square feet of warehouse in Florida, Michigan and Minnesota. Northwest paid 68 cents a share, which represented a 28% premium to Northwest Gaming Tribe's three-month average stock price of 53 cents, a release said. The merger was subject to a number of conditions, among which is the successful completion of a cash tender offer for Northwest Gaming Tribe's outstanding senior secured notes due 2009 at a 12.5 percent discount to par value. The cash tender for Northwest Gaming Tribe's ...