My Path : Home > Investor Relations > Value Proposition

Value Proposition / Exit Strategy

The Management’s goal is to continue to strengthen Medical Connections and grow the Company into a leading medical recruitment and staffing firm in the highly fragmented healthcare industry that will experience annual double-digit growth through the end of the decade. The general labor scarcity in healthcare, coupled with an ever-increasing need for qualified professionals, continues to create new employment opportunities – particularly in the contract (temporary placement) portion of the industry. As Medical Connections continues to fill out its roster of experienced medical recruiters, the results should quickly become apparent as the Company records millions of dollars in revenues and profits in a relatively short period. The Company already has completed the first step of its exit strategy of becoming a publicly traded company and will continue to work toward the next step.

Medical Connections will continue to become a well-respected and successful player within the sector, and further market itself for future acquisition by a larger entity.

Reverse Merger with Webb Mortgage Completed. The SEC (U.S. Securities and Exchange Commission) cleared the merger of Medical Connections and Webb Mortgage, which is the most crucial step for finalizing the deal. Medical Connections executed the share for share exchange agreement, plus a reverse merger, and on January 23rd, 2006, the Company was listed on the OTC BB as a publicly traded company with the symbol MCTH.

Medical Connections’ management team has proven with its diverse talents and histories of achievement in mergers and acquisitions that it is able to accomplish either of the above exit strategies.

In the healthcare business, there is an ongoing strong trend of mergers and acquisitions, as well as a successful buy-out history. The health care M&A market maintained its strength in 2006 and 2007 despite some turmoil in the credit markets and mounting uncertainty in the greater economy. Consolidation is expected to continue, particularly in some areas of healthcare services. The weak dollar will continue to attract foreign capital for important acquisitions of American companies.

The total size of the health care IPO market increased during 2007, with almost $4.4 billion raised through initial public offerings. This represents an increase of about 21% in total dollars raised, compared with 2006. Health care merger and acquisition activity reached an all-time high in 2007, surpassing the record that was set in 2006. The number of deals announced increased by about 4% over the prior year, resulting in a grand total of 1,052 mergers and acquisitions announced during 2007 with a value of $284 billion.

In the healthcare services sector of the M&A industry, a total of 58 deals were finalized between 2006 and 2007, amounting to an impressive record number of $ 1.8 billion.

The trend of Private Placement-based capital infusions in companies is increasing more than ever, with emphasis on the healthcare industry.

The global business development also shows trends of big mergers and acquisitions. The trend appears to have overtaken the medical staffing and recruiting industry, where during the last 2 years high profile deals continue to attract the attention of investors. In 2007, there were 24 deals, slightly below the total deals in 2006, but representing much larger dollar amounts. The top 5 recent high-profile deals in the healthcare staffing field amounted to $337 million. The valuation of these 5 deals is almost 5 times higher in total dollars compared to the 34 deals of the year 2005, which were worth $70 million.

Similar trends have been observed in the United Kingdom, with emphasis on UK companies acquiring local firms in the USA, permitting UK staffing companies to enter the US market.

As evidenced in the biographical data of the management team, its members have extensive experience in the successful application of exit strategies, both in launching successful IPOs and in preparing companies for profitable buy-outs.

With a solid background in building successful companies from inception to launch of IPO or buyout, the management team’s experience strongly indicates that they should be able to execute this plan with rapid success. As such, the Company should become an alluring acquisition target for one of the larger companies in the field, which continue to purchase similarly constituted companies to increase their respective market shares and to sustain their high rates of growth. Medical Connections management is dedicated to achieving this goal.