Phoenix serves as interim CFO to a web-based medical education technology and web hosting company to identify the likely liquidity requirements of the Company.
Phoenix’s client was a $5 million second stage, web-based medical education Technology and Web Hosting Company based in Massachusetts.
A series of missed revenue and profitability performance forecasts, coupled with delays in delivery of next generation technology placed a significant strain on the Company’s liquidity and created a significant decline in the confidence of their primary private equity investor.
Phoenix was engaged as the interim CFO and quickly identified the likely liquidity requirements of the Company in the short and intermediate term, the likely long-term market value of the Company’s technology, and the likely return to the shareholders. Phoenix concluded that the Company’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.
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