Tobin & Company Investment Banking Group LLC assisted the client through a significant strategic review, helping the company to build an offering document that encompassed a business plan and a “whole company” financial model. The Firm worked closely with the CEO and CFO of the client, helping to establish strategies for growth and success.
MobileSmith Health (OTCBB: MOST) provides turnkey mobile applications that improve health outcomes, patient satisfaction and adherence for the new generation of digital health consumers.
PROBLEM
On his first day, the new MobileSmith Health CEO knew he faced challenges. The turnkey mobile software application, designed to help medical providers improve patient access, satisfaction, and health outcomes, had too many products, too many markets, too little cash, and no profit. That aside, the seven-year-old “start-up” was public but not listed.
SOLUTION
After months of refining staff, evaluating products and scrutinizing high-potential markets, he turned to Tobin & Company for Valuation and Strategic Advisory services, to create a strategic plan complete with operational performance models. Known for quickly identifying company problems so owners can focus on solutions, TOBIN began immediately. After six intense weeks of answering uncomfortable questions about company and industry data, as well as scrupulous soul-searching, the path forward became clear: focus on the two products MobileSmith Health did really well.
The resulting thorough yet concise document includes cash flow and income statements, three-year projected annual and monthly income statements built on detailed financial calculations, a discounted cash flow deriving value based on projections, comparables valuations, personnel skills and talents, detailed key assumptions, customer acquisition analyses, a depreciation schedule, summaries of historical financial statements and balance sheets, and a waterfall analysis regarding ownership.
RESULTS
Today MobileSmith Health strictly adheres to a three-year rolling plan; updated quarterly. This approach eliminates distractions, saves time, and marshals effort when big opportunities arise.
Outcomes have included:
- Number of products reduced from 15 to two
- Initial direct-sales model switched to channel-sales
- Financial reporting switched to faster, more robust system
- Three multi-million dollar accounts acquired during first year
- Pathway to sustainable profitability established
- Process initiated to gain NASDAQ listing
Thinking back on the strategic planning process, MobileSmith Health CEO Randy Tomlin credits the strategic plan’s success to his internal team, a collaborative effort with TOBIN, and straight talk. “Justine Tobin doesn’t mince words! She told us developing the plan was going to be the hardest process we’ve ever been through and she was right. Throughout the process, she wasn’t afraid to tell me my baby was ugly. We fixed it together.”
