Case Study
Rent.com
In December of 2000, the Chairman of the Board and the President of Viva.com retained Tortus Technologies, Inc. for a business consulting and rightsizing endeavor. Viva.com, a rental property directory, required an outsider's perspective on defining their business concept, model, strategic goals and operational plan. They needed to overcome specific barriers and address business flaws before they could successfully move ahead in the industry. The mission was to reorganize, identify other business opportunities, and eventually find a strategic buyer for the business.
Viva.com was funded by several large real estate investment trusts [REITs] in Santa Monica, California. During our engagement, the operating name was changed to www.rent.com, which more effectively communicated the business model. At the time, Rent.com was a struggling web-based start-up due to the dotcom bust, the weak economy, and the lack of a specific strategic plan.
Our business consultants worked with Rent.com executives on a complete business reorganization, rightsizing, and realignment. Our team assisted Rent.com in all aspects of the reorganization to address their outstanding issues, review current assets and develop a clear and concise plan of action. We helped define the mission, uniqueness in the market, operating concepts, and positioned the company for growth and acquisition.
Rent.com grew from virtually no revenues in 2001 to $40 million in revenues in 2005. In January of 2005, Viva.com was purchased by eBay for $415 million dollars. This strategic sale provided Rent.com the resources to grow and successfully expand their business as one of the leading sites for rental properties across the country.