Software developer: wireless payment

Background

  • Introduced by VCs who were co-investors
  • Company had demonstrated the technical merits of the software and attracted significant industry partners but had failed to achieve acceptable revenue growth or targeted milestones
  • Runway was reduced to approximately eight months and management had lost the confidence of the board in delivering on plan

Activities

  • Contracted to provide a phase one assessment of the company to address primary business issues and provide recommendations for strategic direction
  • Completed a full evaluation of the company’s business programs and recommended a refocus of resources on highest value segments in conjunction with the implementation of a cost control plan including a reduction in force to reduce monthly burn by 25%
  • Recommended an additional financing from the existing shareholder group which was approved by the board
  • Provided interim management to implement plans
  • Recognized value in splitting the business assets from the non-capital tax losses

Results

  • Completed creative transaction to bring new investment and restructure company in oil and gas sector with leading Canadian Energy Trust
  • Business assets sold to public company providing business process outsourcing in the Internet services market