Medical Learning Company, Inc.

Division: Phoenix Management Services


Client

Medical Learning Company Inc. ("MLC") was a $5 million second stage, web-based medical education technology and web hosting company, based in Newton, MA.

Problem

A series of missed revenue and profitability performance forecasts, coupled with delays in delivery of next generation technology placed a significant strain on MLC’s liquidity and created a significant decline in the confidence of their primary private equity investor.

Solution

Phoenix Management Services, Inc. was engaged as the interim CFO and quickly identified the likely liquidity requirements of MLC in the short and intermediate term, the likely long-term market value of MLC’s technology, and the likely return to the shareholders. Phoenix concluded that MLC’s technological long-term prospects, coupled with its immediate and likely further liquidity needs, did not support the strategies of the primary shareholders. As a result, the shareholders chose to sell their position in the Company and declined to make additional equity investments in the Company. This resulted in a minimization of investment loss relative to what had been contemplated prior to Phoenix Management’s analysis and findings.