- Management met the financing pressures by heavy reliance on short term credit (like in the case of Biological Labs Inc.)
- Initial closing on 2 June 1983, AMT received cash payment of $7million in exchange of 5% of he outstanding shares and right to purchase an additional 13% of the outstanding stock over a 5-year period ending June 1988 for $12million
- AMT has a credit line of $6 million with accounts receivable and inventory to Sunnyvale Bank
We give them the full loan!
Operationally - they have the systems in place since 1984. You just need the right people!
they are just 3 years old!
to profit they just need to take out R&D
Advanced Medical Technology Corporation
Thank you for your attention!
And one more thing...
Conclusion
Company Background
- Developed, manufactured, and sold scientific medical instruments, needles and catheters
- Products serves as an alternative to traditional surgical procedures with less risk at a lower cost
- Has experienced enormous growth (heavy spending on research and development and rapid expansion on its sales force)
- Industry continues to experience a robust 30% sales growth currently as well in the future
Problem
Tom Winter, vice president and loan officer of Western National Bank of San Francisco, California needs to decide whether to lend $8million (line of credit) to Peter Haskins, president of AMT
Analysis