Case Study

A few years ago I worked with a client who owned an appliance store that was doing about $10M in annual revenue.  The business focused on large household appliances, mainly high end kitchen appliances.  They had an amazing showroom and took care of clients from sales and ordering through delivery and installation.  This family-owned and operated business had been serving its community since 1970.  The owner approached Blue Sky for help with a possible sale of the business.  She was entering reti…

According to many business surveys, approximately 85% of business owners do not know the value of their largest asset, their business. This was also the case for the owner of a manufacturer who was counting on the proceeds from the sale of the business to fund his retirement. 

Over the years, he had a gut feeling that the business was worth $8M but had no documentation backing up that figure. The owner was beginning to feel burnt out but continued on as usual because $8M did not fund his retire…

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 cr…