Target Overview

The target company is an early stage natural foods, extracts, and ingredients company with several key differentiators which make it a compelling investment opportunity for Blue Sky Capital.

Market Traction

Actively generating revenue in multiple segments in the US, China, Japan, Europe, and Australia.

    • Protein Bars
    • Oils
    • Powders and ingredients

Supply and Resources

The company purchases byproducts from key regional and global food product manufacturers.

    • Lower raw materials costs
    • Significant growth potential within current supply network
    • High quality supply

The company leverages this byproduct supply to manufacture ingredients for its consumer goods.

    • Oils
    • Protein powders
    • Natural Flavors


The product development leader has two decades of R&D experience optimizing the drying, pressing, and filtration processes.

    • Process is 100% free of enzymes, solvents, chemicals, & synthetics
    • BRC Certified

The BRC Global Standard for Food Safety began in the UK to help the food industry meet legislative requirements of the EU General Product Safety Directive and the UK Food Safety Act. Since that time, the Standard has received global recognition with over 20,000 certified sites worldwide. The Standard is a Global Food Safety Initiative (GFSI) recognized certification.

The organization’s president has decades of executive level experience managing market capitalization efforts for blue-chip organizations as well as generating multi-million dollar enterprises out of struggling divisions.

The organization has high caliber leaders in key positions.

    • Their food quality and safety director holds a PhD, and has been integral in facilitating the BRC accreditation.
    • Their production director, a former officer of both the Navy and Army is a seasoned, efficient, and organized leader.


Several patents have been awarded for novel processing techniques.

    • The company secured a significant contract for ingredients by a Chinese food manufacturer.
    • Later trade regulatory changes in China interfered with this contract.
    • The company has been successfully establishing new sales and distribution channels in China facilitating new growth.
    • The company has opened up new multi-national relationships and sales channels.

The company continues to expand ingredient portfolio and distribution network.

The company welcomes a new CEO to the team with extensive product development and market penetration experience.

The company pivots to develop direct to consumer goods.

    • Diversified offering portfolio emerges.
    • Active negotiations begin with major retailers and fitness organizations for placement opportunities.
    • Company works with major personal wellness/cosmetics brand to co-develop new product line.

Target Strategy

The strategy of Blue Sky Capital would be to supplement the existing strengths of the organization while providing much needed financial management and operational planning support. Our overarching strategy will be predicated on building on the company’s existing strengths to facilitate significant market penetration.

Phase 1: Place Part-time CFO

    • Contract support from professional CFO agency.
    • Develop near and long-term operational growth strategy.

Phase 2: Production Scalability

Develop incremental growth strategy to ensure progressive scalability.

    • Blue Sky will directly spearhead operations and strategic planning and implementation.
    • Over time, and as growth supports, we will place a full-time COO to drive the strategy forward.

Implement strategy concurrent with market penetration.

Investment Modeling

Anticipated Business Market Value:                                     $ 637,000        to      $ 823,000

Add: Real Estate                                                                                $        –

Final value to be based on appraisal

Net Working Capital Requirement                                                  $ (129,000)

Based on the last 12 month average or negotiated

Total Consideration:                                                                $ 673,000         to      $ 823,000

Acquisition of 51% Equity Position                                      $ 343,000         to         $420,000

Add: Anticipated Strategic Growth Funding                                     $ 500,000

Employed as a credit facility to fund growth

Add: Anticipated Transaction Costs                                                  $ 25,000

Estimated Total Fund Capital Employed                              $ 868,000         to        $ 945,000

Target IRR Minimum                                                                               18%

Target Hold Time (years)                                                                           7

Target Exit Value                                                                  $17,410,000         to        $ 20,892,000