Case | HBS Case Collection | February 2011 (Revised June 2013)

ALAC International

by Richard S. Ruback and Royce Yudkoff

Abstract

ALAC was a small importer of specialty industrial chemicals. The case explores the different financing alternatives to facilitate the company's explosive growth in working capital. At the end of 2009, the company was awarded the United States distributorship for the specialty chemical di-isononyl phthalate (DINP) from a large Taiwanese producer and had almost tripled its sales in 2010. It expected to double its sales in 2011 and to dramatically increase its profits. ALAC critically needed to obtain financing for the explosive growth in its inventory and accounts receivable balances.

Keywords: Working Capital; Growth Management; Financing and Loans; Chemical Industry;

Citation:

Ruback, Richard S., and Royce Yudkoff. "ALAC International." Harvard Business School Case 211-065, February 2011. (Revised June 2013.)