The Challenge

Founded in 2004 with funding from Toreador Resources (TRGL), ePsolutions was a classic software start-up focused on developing and marketing a SAAS based back-office automation solution for the growing deregulated energy markets in Texas. The technology was advanced and a limited number of customers were in place.

Despite some important successes, company leadership was mired in unproductive inter-personal battles between founders. There was little accountability and no cohesive business strategy. With initially rosy financial projections unmet, losses were continuing and investors were poised to exit and close the business.

The Solution

In June of 2006, ParCon was selected by the lead investor to rapidly evaluate the company for viability and recommend a plan to quickly stem losses while developing longer term steps that would help stabilize ePsolutions and allow investors to recoup their substantial initial investment.

In the assessment, ParCon found strong market and technology fundamentals in place with a small but very satisfied customer base. We recommended a turn-around effort with immediate changes to company leadership. ParCon Partner Matthew Gill took the helm as CEO. Under Gill's 18-month engagement, the leadership team was reorganized, aligned and upgraded, a new and aggressive growth strategy was put in place that built on early customer success in Texas, and profits were improved by launching professional services, improving operational processes and getting control over finances with better forecasting and reporting.

The Results

With a clear focus and improved leadership in the young company, results began to improve quickly and dramatically.

• From 2005 to 2006, revenues rose four-fold, doubling again in 2007
• Leadership and technical talent was upgraded and expanded by 200%
• By 2008, historic losses had turned into consistent 30% EBITDA
• The original investor successfully sold their position, returning not only their original investment but also realizing a 30% ROIC
• In 2009, ePsolutions was recognized by Fortune Magazine as the 244 fastest growing private company in America.