An up-close, in-depth, and detailed examination of companies that have gone through some aspect of the M&A process and how we were able to help.

Consulting

Serving the Wrong Market

In some cases, geographical expansion can throw a wrench in years of experiential success. Take the case where a business owner came to us with an exceptionally successful brand with better than a fifteen-year track record of success. They were stymied by the fact that one branch could not seem to make money. While all of their branches were returning a healthy profit month over month, this one branch was posting significant losses every single month. Owners were confused, they transferred their top talent over, tried several promotions, and pretty much everything else they could think of. Nothing worked. By the time they reached out to us, they were beyond the point of frustration.

Consulting

Growth Recapitalization

It is not uncommon that in conversations with a business owner, they express frustration at knowing there is a major growth opportunity in front of them they are simply not equipped to capture. There are different obstacles these owners identify, but most of them boil down to a lack of capital, a lack of expertise, or the wrong internal management system. This situation is a perfect opportunity for a growth recapitalization. The concept is that the owner sells off a portion of their equity to create a business partnership with someone who possesses what the organization is lacking. In a recapitalization, the owner maintains an ownership stake so they can participate in achieving next-level growth and sharing in the value that is generated.

Sell-Side M&A

Ready to Sell

A referral partner contacted Blue Sky in search of buyers for a boat dealer they were actively marketing to prospective buyers.  Our Business and Market Value Analysis indicated there were two major concerns that needed to be addressed.  We worked with the listing agent and business owner to resolve the identified issues.

The first issue identified was the current valuation had add backs that were not normal or customary.  The listing agent added back two items; flooring interest (the interest charged on boats in inventory), and an add back for non-normalized rent.

Valuation

Death of the CEO

Losing a family member is never easy.  There are so many things that need to be dealt with, funeral planning, handling financial affairs, grieving.  In the midst of all of this, would you want to force your family to also deal with trying to take over or sell your business?

I have worked and spoken with many business owners who express deep pride in all of the effort and sweat equity that has gone into building their companies.  Their families have been by their side over the years, supporting and cheering them on.  But how well does your spouse really know what you do on a day-to-day basis?  Would they be able to step into your role and run the company at the same level you have been? Would they want to?