Keystep engaged with a software company with $3 million in annual revenues that had invested heavily in R&D. The company was burning through $600,000 in borrowed funds and running into cash flow problems. In fact, the owner/president had, tapped into, and maxed out, his own personal assets in an attempt to maintain the company’s finances.
After a quick review, Keystep determined that the company did not have a clear focus, but that its operations could be reorganized around three key business lines. Keystep reorganized the company’s internal operations and aligned its resources around three profit/loss centres. This reorganization, which included temporary and permanent staff reductions, reduced operating expenses by 20 percent and reduced R&D spending to achieve positive cash flow. With the new operational structure in place, three new sales/business managers were added to the team, which quickly resulted in 50-percent increase in sales.

Following this successful turnaround, the owner/president elected to position the company for sale. Keystep assisted with this process to ensure favourable terms that earned a reasonable return for shareholders, obligated the buyer to assume all debts, and released all personal obligations that had been incurred.