The Challenge

Andeler Power was founded in Lubbock, TX in 2001 to take advantage of the newly deregulated Texas residential and commercial marketplace. Initially focusing on multi-unit residential locations, the company has gradually expanded to serve a broad footprint of West Texas deregulated electricity markets.

As the company grew and operations became increasingly complex, it began to suffer escalating operating losses which company leadership seemed unable to reverse. With the company on life support, key investors needed a solution and needed it immediately. Given the precarious position of the business, a search for a long-term replacement was not deemed a viable option by the board.

The Solution

In the fall of 2008, the board selected ParCon's Chuck McArthur, one of our experienced interim executives, to help stem the losses and turn the company toward profitability. With only weeks to sooth angry lenders and stem the red ink, Chuck began a rapid assessment of the firm's financial condition, markets, customers, & strategic processes to understand the causes of poor performance.

The operating assessment highlighted the need for the company to invest in a new back-office software solution supported by better operating processes if it hoped to survive. Within weeks, the team selected and implemented an advanced SAAS solution for back-office automation, revamped mission-critical processes that delivered immediate improvements in both profitability and customer satisfaction while Chuck began to evaluate, reorganize and upgrade company leadership. With a firm foundation established, the ParCon team then developed a new game plan to support future growth which kept lenders interested and investors excited.

The Results

With critical processes revamped and supported by advanced technology, the company experienced dramatic improvements in performance. By 2009, the company moved from significant losses to strong profitability and growth. Need for additional capital was replaced by debt retirement and today, the firm is thriving in exciting new market. Engagement successes include:

• Return on net assets improved to 75% within 12 months.
• Retirement of 25% of the total company debt within 14 months
• Sustainable growth rates of 20-50% per year without new funding