Jarrett Bauer, former CEO of Health Recovery Solutions, has pivoted from home-based care to the financial services sector with the launch of Montauk AI, a transaction and investment banking platform aimed at providing real-time valuations for businesses, particularly small- and mid-sized companies. Montauk AI seeks to make investment banking services more accessible, a goal Bauer articulated, stating, “We’re on a mission to use AI and software to create exits for fractions of the price, and also to allow greater access for people who have not typically had financial resources,” in an interview with Home Health Care News.
Montauk AI’s service offerings encompass detailed financial forecasting, the creation of marketing materials, and facilitating connections between companies seeking exits and potential investors. This approach targets the significant number of small organisations in home care, a sector where Bauer identified a critical knowledge gap concerning financial transactions. “A lot of it comes down to experience,” he noted, emphasising that many home care providers lack the expertise to navigate the complexities of business valuations and financial dealings.
Among the early clients of Montauk AI is Independence Home Health, based in West Palm Beach, Florida, which delivers comprehensive health services to over 3,000 patients each year. CFO Jonathan Dickinson described Montauk AI as an instrumental tool in the company’s growth strategy, particularly during negotiations for an acquisition. He explained, “Jarrett’s team came in and said they could help with an evaluation... It was probably a two-and-a-half week timeframe from start to finish,” highlighting the convenience and efficiency of the evaluation process.
The timing of Montauk AI’s services appears particularly relevant given challenges in the home health sector, as pointed out by Dickinson, who noted that the current landscape is prompting more exits, especially in light of the evolving Medicare and Medicare Advantage landscapes.
David Bell, CEO of GrandCare Health Services, a Pasadena, California-based organisation serving 10,000 patients annually, has also praised the platform. He contrasted Montauk AI with traditional brokerage services, remarking, “These aren’t just smart people who know how to produce good powerpoints... it’s really targeted at the market.” Bell underscored the disparity in financial resources available to larger corporations versus smaller companies in the investment banking arena.
Both Dickinson and Bell believe Bauer's background in home care technology is a significant asset to Montauk AI. Bell stated, “He really understands what life is like... there are specific regulatory issues... specific licensing requirements that he understands deeply.”
Montauk AI aims to bridge the gap in investment banking services that has left smaller organisations inadequately supported. Bauer expressed a vision for Montauk AI akin to the transformative impact with which Uber changed the ride-sharing industry, highlighting an aspiration to democratise access to critical financial services for businesses that have traditionally been underserved.
Source: Noah Wire Services