Amtek Auto Ltd.: From Acquisitions to a Financial Crisis Harvard Case Solution & Analysis

In the summer of 2015, India-based Amtek Auto Ltd., one of the state’s biggest companies in the manufacturing of automotive parts, was on the verge of financial ruin.

Tensions were high as the firm faced mounting pressure over its liquidity issues, and after reporting a net loss for the very first time in two decades. Should Amtek consider selling off some of its assets to raise the needed cash, or should it look to banks and investors?

Learning Objective: This case is suitable for use in MBA and other graduate-level management programs in classes in corporate finance, strategic fiscal management, and debt financing.

Within corporate finance settings, this case could be used in the capital structure choices module to examine the development of a firm’s debt policies in light of the costs and benefits of debt. After conclusion of the case, pupils will have the ability to:

Identify the drivers of financial and company pitfalls.

Understand the tradeoff of leverage when it comes to cost and gain of debt.

The links between a company’s dividend decisions, capital structures, and investment.

Appreciate the strategies to produce cash flows for a company by managing assets and liabilities.

Publication Date: 05/24/2016

This is just an excerpt. This case is about Finance

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