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Summary
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A hard turnaround for software
Ailing software companies may be the most difficult of all to turn around: a McKinsey study of 492 of them found that only 13 percent succeeded. Product, financial, and labor market forces unique to the industry can propel a software company to a huge initial success but, when the tide turns, can quickly suck it into the abyss.

The take-away: How do you beat the odds? First establish liquidity; then shoot for the category-killer products that will restore your credibility in product and financial markets.
  


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