By Steve Zurier. Facing legal problems and the inability to sustain a positive cash flow, Harold and Michael Holigan, the father and son team who founded MH2 Technologies, resigned last November after settling with Olympus Real Estate Partners, the company's financial backers.
Under the settlement's terms, Olympus is now the sole owner of MH2's software operations; the Holigans maintain ownership of the television show "Michael Holigan's Your New House'' and MichaelHoligan.com. Harold was the company's former chairman and Michael served as president. Felix Vasquez will stay on as the company's CEO. No specific financial terms of the agreement were disclosed.
As part of the settlement, Olympus also dropped its lawsuit against Harold Holigan. The lawsuit filed against the elder Holigan last fall alleged that goods and services that should have been used to build a model home for Michael's television show were incorporated into a personal residence for Harold. The suit said vendors agreed to provide the materials for a model home in exchange for television advertising time during the show.
Builders interviewed about the management shift are cautiously optimistic about MH2. Some worry about MH2's commitment to support the next generation of Fast, the company's enterprise product, while others say MH2's best shot at profitability is to divest itself of its media properties and focus on software.
Jim Messina, director of information systems for Lennar Corp., says there's been no change in service since the departure of the Holigans. "I view this more as a management change,'' says Messina, who adds that Lennar has about 100 people using MH2's BuildPro scheduling application in Houston and plans to roll out BuildPro companywide this spring. "Felix will bring in new people who will run the business as a software company and not get distracted by other activities.''