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Advanced Medical Technology Corporation

In: Business and Management

Submitted By mermaid123
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Advanced Medical Technology Corporation (AMT)

Background
Advanced Medical Technology Corporation, AMT, is a company that develops, manufactures, and sells medical instruments that offer an alternative to traditional surgical procedures at less risk and lower cost. Due to the innovative nature of the company and their need to sustain growth patterns they invest heavily on research and development and in their sales force. At the present time, AMT has been able to grow their sales in excess of 30% annually. However, it should be noted that Peter Haskins, AMT President, believes that the sales trend the company has experienced will continue and if the company fails to meet sales demand it will compromise it’s market position. Thus far, AMT has relied on short term credit, lease agreements, and the establishment of a connection with Biological Labs Inc. to meet the demand for their products and continue R&D patterns.

Peter Haskins recently approached our bank because he had become dissatisfied with his loan agreement of $6 million at Sunnyvale Bank. Mr. Haskins explained that Sunnyvale Bank did not make an effort to understand his company and that they had adopted a very restrictive attitude that has limited AMT’s room for expansion. In the body of the memo we will provide the following: a general analysis, financial statement analysis, a review of the 5 C’s of Credit, and an investigation of Biological Labs ability to back AMT. At the conclusion of this memo we will offer our opinion as to whether or not a line of credit should be extended to AMT Corporation.

General Analysis 1. Market Characteristics
The medical instrument industry features fast growth, fierce competition and heavy investment in technology. 2. Products
AMT develops and manufactures state-of-art medical instruments which require a significant amount of capital investment which...

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