SERVICES
Exit Planning & Value Creation™
Blue Sky Four-Phase Value Creation Process™ is designed to help you create a business that is valuable today in the form of profits and cashflow and in the future in terms of exit value. Our process gives you a clear understanding of the steps that are required for the successful transition or sale of the business as well as for taking on your first significant outside investment.
The process is broken into four distinct phases, each with a defined cost, set of deliverables and time frame. This process is designed to build value. The process is structured to keep the business owner, and their management team engaged.
You are not committed to completing all four phases and can terminate services at the completion of any Phase.
Value Creation Process
Business Valuation, Business Benchmark, and Personal Financial Plan—three essential pillars in financial strategy, each serving as a critical bullet point.
01. Identify Value
Business Readiness Assessment, Business Attractiveness Assessment, and Owner Readiness Assessment—key factors in determining business viability and leadership preparedness.
02. Understand Drivers of Value
Execute Action Plan for Value Drivers, Weekly, Monthly & Quarterly Accountability Reviews, and Quarterly Value and Benchmark Progress Updates—a structured approach to tracking progress and driving long-term value.
03. Maximize Value
Review Exit Options, Develop Teaser, & CIM, confirm go to market reach out list—Leverage Our Network to Bring the Business to Market, prepare for and represent company during Due Diligence, Complete sale of business.
04. Review Exit Options
Business Valuation
Business Benchmark
Personal Financial Plan
Business Readiness Assessment
Business Attractiveness Assessment
Owner Readiness Assessment
Execute Action Plan for Value Drivers
Weekly, Monthly & Quarterly Accountability Reviews
Quarterly Value and Benchmark Progress Updates
Stay or Sell Decision
Review Exit Options (if decided to sell)
In This Section...
Summary of our Value Creation Process:
Phase One : Identify Value
The goal of Phase One is to develop an indication of what the value of the business would be to a potential buyer.
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We start with a fair market valuation. We deconstruct your financials into our valuation model to develop a set of financial statements that reflect the true operating profits of the business.
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We benchmark your business to industry best in class.
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We conduct an analysis of comparable transactions of similar businesses.
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We work with your financial advisor to determine how the potential proceeds from the sale of the business fit into the context of your overall personal financial plan as well as determine the value gap, the difference between the required sales price to meet you personal financial planning needs and the current value of your business.
Phase Two: Understand Drivers of Value
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We run a series of assessments that focus on the levers we can pull to improve / increase the company’s profitability and cashflow. And close the wealth gap identified in Phase One.
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At the end of the process, you will get a detailed report on the outcome of the assessment and a priority list of items that are recommended to address.
Phase Three: Maximize Value
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This encompasses many areas. We work with you to execute on the recommendations from the assessments identified in Phase Two.
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We use different tools and programs in this Phase depending on the outcome of the assessments and areas of focus.
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We also begin the process of preparing your business for due diligence by a buyer.
Our Phase 3 Value Creation Services Process:
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Prioritization: Determine key areas of focus for the next 12 months for you, your organization, and your leadership team.
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90-Day Action Plans: Develop and agree upon detailed plans for immediate action within the next quarter.
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Responsibility Assignment: Assign specific tasks to appropriate team members, ensuring accountability.
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Progress Monitoring: Establish metrics and milestones to monitor advancement towards goals in our weekly management meetings.
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CFO oversight: focused on enhanced financial reporting, monthly actual to budget reviews, KPI analysis.
The valuation creation process is designed to create a holistic approach to preparing both the business and the business owner for a future transaction. In addition to addressing the opportunities outlined in the Phase 2 assessment process, we also work with your professionals, and when necessary we will bring in our strategic partners to address the below areas that impact a successful exit.
Areas of Focus
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Risk Minimization / Management
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Tax Planning
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Estate Planning
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Financial Planning
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Legal Review
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Human Resource Review
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Process Documentation / Policies and Procedures
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Due Diligence Preparedness
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Technology Review
Phase Four: Review Exit Options
At this crucial juncture, we work with the business owner to assess all possible exit strategies allowing the owner to make an informed decision of how they want to take their business to market.
Blue Sky will represent you in a potential transaction, whether it is an internal buyout, shareholder dispute, family succession planning, outside investment or outright sale of the business.
We have an extensive database of Private Equity firms as well as family offices and private investors that we will market your business to.
We will also work with you to create a list of potential strategic buyers that you may wish for us to reach out to anonymously on the company’s behalf.
