In this case the consequence was a larger competitor came along and purchased the company at a premium.
Some businesses are just too dysfunctional to survive.
This company was plagued with leadership issues (CEO/founder had been forced out because of bad board members, new CEO had 0 industry experience and was utterly incompetent) plus because of the cash flow problem, geography, and loss of key customers, the company just could not afford to go out and beef up the R&D staff.
So the next best thing was to replace a couple of the bad board members, cut costs, clean up operations, make the company profitable, and then shop it around.
Some businesses are just too dysfunctional to survive.
This company was plagued with leadership issues (CEO/founder had been forced out because of bad board members, new CEO had 0 industry experience and was utterly incompetent) plus because of the cash flow problem, geography, and loss of key customers, the company just could not afford to go out and beef up the R&D staff.
So the next best thing was to replace a couple of the bad board members, cut costs, clean up operations, make the company profitable, and then shop it around.