Advance Medical Tech. Corp. Case Study

2619 Words Dec 24th, 2010 11 Pages
I.INTRODUCTION
Experiencing low cost traditional surgical procedures, Advanced Medical Technology Corporation (AMT) wants to broadcast this tagline by manufacturing well designed medical instrument based on a massive researching.
Taking into account the efforts and allowances spilled by AMT on its research and development aspect, and in invading new markets, it is not unexpected that it had gained an extraordinary growth and rapid expansion of its sales force for just a few years of being established. Like any other companies who were in their infancy/growth stage, it is a normal thing to put the best shoe forward in order to gain an A+ mark.
But the aggressiveness nature of the decisions made by Peter Haskins, president of the AMT,
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But the company concentrated mainly in research and development and in establishing itself to new markets not merely giving attention to the financial aspect of the company and giving little attention on the company’s resources.
These results to their difficulty in securing credits for them to have sufficient fund because lending group find the company unqualified to enter into loan agreements.
This study focuses on how AMT will be able to raise sufficient fund to finance their continuing operations.
The study includes analysis of Advanced Medical Technology Corporation with the aid of the different techniques presented as part of financial management.
The study further provides that in order for Advanced Medical Technology Corporation to obtain a higher lending limit Line of Credit; the company must work on improving manufacturing inefficiencies, short-term loans, operation and managing Accounts Receivable.

III. HIGHLIGHTS
• The combination of the state-of-the-art products and a rapidly expanding market resulted in AMT’s sales growth in excess of 30% per year. Sales volume, which had grown continuously from the start, was always large in relation to available capital. The situation was worsening by large operating losses.

• In the year 1983, it entered into agreement with Biological Labs, Inc. The company sold to Biological Labs, Inc. 5% of its outstanding shares for $7 million plus a right to purchase additional 13% of ten outstanding

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