F A C I N G N E W C H A L L E N G E SAfter the 1984 merger, the new entity, McGill Smith Punshon, Inc., enjoyed almost immediate success. The vibrant land development economy and the diversification of the services offered, coupled with a talented workforce, enabled MSP to experience some of the most profitable years in its history. Unfortunately, the boom ended in 1990 when the economy entered into a recession. A decision made a year earlier to consolidate the companys three offices into a newly constructed headquarters created a financial hardship on the operation. The companys bankers called their notes, forcing the leadership into bankruptcy.Chapter 11 bankruptcy proceedings forced MSP to intently focus on each and every project to ensure its profitability. With no line of financial credit, MSP and the principal owners had to rely on their own personal cash flow, so maintaining that flow was of the utmost importance. The volume of projects was low, but the company survived by knocking one project down and moving on to the next, doing the jobs and doing them well.147MSP underwent another significant transition during this time period as well. In 1990, Craig Rambo was elected president of the organization, a position he held for the next eighteen years, bringing to the company his knowledge of market diversification and client services. In 1992, Ron Roat, MSPs former president from 1984 to 1990, transitioned from part time to fully retired status, leaving Craig Rambo, Steve Roat, and Jim Watson as the majority stockholders of the company. Under new leadership, McGill Smith Punshon, Inc. started to increase profitability and fully recovered from Chapter 11 proceedings, a feat that is extremely rare. This recovery was made possible through project diversification and the creation of a cash reserve fund. The fund, created in 1997, protects the company during economic downturns and remains in existence today. While no company wants to go into Chapter 11 bankruptcy, this watershed event ultimately facilitated the transfer of ownership to the companys current structure, streamlined the size of its workforce, and allowed the organization to rid itself of long-term lease obligations on its office building. Diversification of the services the company offered, as well as the clients it served, rebuilt the organizations strength. Having registered professionals in a variety of disciplines enabled MSP to pull through.52