Company is an early-stage provider of acute virtual care services. Founders are trained health care providers with impressive medical credentials and emergency room management training. Company sells its services directly and through brokers and resellers to self-insured organizations, health care systems, and health insurers.
Company was going through rapid growth phase and requiring capital to fuel hiring, sales and marketing, and operating expenses. In addition, Company had outgrown its office space, necessitating a move to a larger footprint carrying a higher lease cost.
As Company provides services 24/7/365, it will scale revenues to fit its organizational design, but there was an operating cash shortfall that needed funding during the ramp phase.
Reclinata reviewed the Company’s Business Plan and current operating environment. Company was experiencing steady revenue improvement but was constrained by cash flow considerations. Without a senior financial executive on staff, Company lacked the capability to produce models and analyses necessary to raise financing. After preliminary modeling was performed, Reclinata also concluded that the Company and its CEO would benefit from focused and ongoing strategic planning.
Reclinata’s analysis showed that the Company needed a refreshed marketing approach, including updating the website and executed an aggressive social media strategy.
Reclinata Group Analysis
Reclinata’s Value Creation Plan began with establishing and staffing fractional Chief Strategy Officer and Financial Officer positions at the Company. The primary objective of this move was to lead a financial and business planning exercise. That exercise would enable the Company to build the models and presentation materials to raise growth capital.
Additionally, the Plan is structured so that the Company can continue to call upon Reclinata executives to continue to participate in the creation and implementation of strategic growth initiatives.
Reclinata invested directly in the Company and led the successful raise of convertible debt that allowed the Company to bring on needed liquidity.
Value Creation Plan
As a result of Reclinata’s efforts with the Company, proceeds were invested in various operational areas, new Sales hires, a new building lease, and a dynamic Marketing campaign, which Reclinata also supported with the work of a fractional Marketing Specialist.
Year over year growth at the Company has expanded and an ongoing capital expansion program is now being designed for the next phase of growth.