Case Studies: Turnaround

Regent Pacific was engaged by a publicly-traded software corporation after its market cap had declined by 70% in less than a year. The company had never been profitable in its nine years of existence and was experiencing a 60% employee turnover rate. Spending was out of control with five acquisitions in nine months and the company was hemorrhaging cash.

The board engaged Regent Pacific to assess the situation, develop viable alternatives, refocus the company, manage it through the crisis and implement a successful turnaround strategy.

Despite limited cash reserves, the Regent Pacific team led the company to profitability and positive cash flow in less than a year. Revenues grew more than 50% per year for the next three years, and pretax profit margins were in the 25% to 35% range in this timeframe. While still under Regent Pacific's leadership, the company was sold, netting its shareholders over $500 million in cash proceeds.