Jarrett Bauer, CEO of home health and remote patient monitoring company Health Recovery Solutions, wanted to help more home health providers expand their reach through virtual care.
While home care remains a top priority for Bauer, he is now addressing the needs of other industries. He recently launched Montauk AI, a transaction and investment banking platform that helps companies with real-time valuations.
“We are on a mission to use AI and software to create exits at a fraction of the price and provide greater access to those who traditionally could not afford it. Bauer told Home Health Care News. “There are stages to successfully selling a business: researching the financials, obtaining a valuation, creating marketing materials, reaching out to investors, and managing the process. We help you achieve great results.”
In fact, one of Montauk AI's key goals is to make investment banking services more accessible.
“My ultimate goal is to provide home health and hospice operators with access to these incredible services so they can get the outlet they deserve,” Bauer said. Ta.
Broadly speaking, the platform creates detailed financial projections and marketing materials and acts as a matchmaker between companies looking for an exit and investors looking for a deal.
The driving force behind Montauk AI is Bauer's belief that traditional investment banking processes lack the resources to effectively serve small and medium-sized businesses. Home care providers often fall into this category.
“I think a lot of it comes down to experience,” Bauer said. “There are over 14,000 home care agencies, and the majority of them are small organizations. They are very concerned about a business that they don't know about, so they usually don't have the experience to do these financial transactions. No. “What are my company’s prices?” Who should I talk to? 'The real problem we're trying to solve is that people don't have this information. Thanks to AI and software, we can offer incredibly valuable services like those provided by Fortune 500 companies. We offer this product for everyday use to the average owner. ”
Montauk AI isn't just aimed at home care businesses, although some of our early clients were organizations in this space.
One of these companies is Independent Home Health, based in West Palm Beach, Florida. The company provides skilled nursing care, personal services, physical therapy, and occupational therapy in patients' homes. The company has four locations serving the East Coast of Florida. We serve over 3,000 patients annually.
For Independent Home Health, Montauk AI has become a tool to support the company's growth efforts, according to CFO Jonathan Dickinson.
“We're always looking at what's out there in the industry so we can grow either through acquisition or organically,” he told HHCN.
Independent Home Health was negotiating with potential acquisition targets when it began working with Montauk AI.
“(Jarrett's) team came over and said they could help with the evaluation,” Dickinson said. “It was a very quick, easy and simple assessment that helped us understand what we needed from a bank funding perspective, with the key points of either A or B increasing the company's valuation. It probably took about two and a half weeks from start to finish.
Dickinson noted that this process allowed Independence Home Health to properly evaluate companies it was considering acquiring.
“This puts us in a great position to say, 'Here's what we're trying to do as a company, and here's where we want to go,'” he said.
In Dickinson's view, the arrival of Montauk AI is especially timely given the current state of the home health care industry.
“There's probably more people out there in the home care industry, and what he's offering is going to be needed more than ever in Medicare and Medicare Advantage plans alone.” spoke.
GrandCare Health Services is a Pasadena, California-based healthcare organization with three home health agencies serving 10,000 patients annually. Montauk AI provided a new experience for a company that previously worked extensively with brokers and investment bankers.
“These are not just smart people who know how to make a good PowerPoint,” GrandCare Health Services CEO David Bell told HHCN. “Jarrett and many of the people on his team are also home health professionals, so this isn’t a regurgitation of what you get from ChatGPT, it’s really targeting that market.”
Bell believes one of the main gaps in the market is the ability of large companies to spend millions of dollars on high-level investment banking support compared to smaller companies.
“Where there is a gap is in small to medium-sized businesses,” he says. “The services that are available to help people like that promote their business are basically brokers. They answer the phone and certainly give a little bit of advice, but at the end of the day, They basically just put you in front of the buyer, but it's your job to deal with the buyer.”
Montauk AI aims to level the playing field for small and medium-sized businesses with tight budgets.
Additionally, Dickinson and Bell believe Bauer's background in home care technology will be an asset to Montauk AI.
“He really understands what life is like, and I think that's something I really appreciate,” Bell said. “There are certain regulatory issues, certain change of ownership requirements, or certain licensing requirements that he deeply understands. So the 11th hour when you're talking to a potential buyer. I'm not surprised by those things. We're at the forefront of those things.”
Ultimately, Bauer has a clear reference point for what he wants to accomplish with Montauk AI.
“Just as Uber can democratize the ride-sharing business, we're trying to do the same thing,” he said.
