Module 05Written Assignment - Borrowing to Finance Growth

Here is some additional information to help with your case study review:

• MorrisAnderson is a turnaround firm that provides company assessments and creates complete action plans to help move companies forward. For more information visit their site at: http://www.morrisanderson.com/.

• EBITDA = is an accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation and amortization are subtracted, as a proxy for a company's current operating profitability, i.e., how much profit it makes with its present assets and its operations on the products it produces and sells, as well as providing a proxy for cash flow.(Investopedia)

• SG&A =Selling, General & Administrative Expense - Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. (Investopedia)

Write your answers in the space provided for each of the questions below:

1. Why is it more difficult for healthcare companies to get expansion financing in the current economic situation?

2. Do you think that the checklist for expansion in the article would provide an in-depth overview of the company? Which ones do you think would be the most helpful?

3. Why did the bank require a turnaround firm to review the medical device manufacturer company's loan request? How did their EBITDA change from 2011 to 2012? Was this an indicator that something was wrong?

4. What were some of the positive aspects about the medical device contract manufacturer company's desired growth? Why should they be considered for additional financing?

5. What were the 2 major issues with the Caribbean expansion the turnaround company found and why do you think they were brought up?

6. How were they able to finally get the needed financing for expansion?

7. Why may healthcare companies need to look beyond their banks to secure financing?