Recently, we were inspired by Simon Sinek, author of “Start with Why: How Great Leaders Inspire Everyone to Take Action,” to define the “why” behind our role as a CPA firm:

The following is part of a series illustrating our “why.”

“We’re here because business owners and governments need solutions to their challenges — not a commodity product. Through our dedication to teamwork, development and relationships, we will help our clients thrive.”

The owners of a recreational business were in a sticky situation. Because of previous lending agreements, they were nearly powerless when it came to decisions. Their hands were completely tied; anything they wanted to do was subject to the lender’s approval. It was a mess. Thankfully, the business was due to refinance the overly restrictive note in 2017. We agreed that a successful refinancing process—one that would lead to our client’s freedom—would require at least 18 months. So, when the time came, we got to work right away.

The refinancing process requires the cooperation of several parties; it can really be quite daunting. To assist our client in assembling a rock-star refinancing team, we acted as the “quarterback.” In addition to bringing the client’s lender, appraiser, and business valuation firm together, we helped to define the goal and kept everyone moving toward it.

Once the refinancing package took shape, we spent the next several months helping our client evaluate it. To do this, we developed a 10-year projection for paying down debt, a cash flow analysis, and a budget. We set and held regular meetings twice a month to review actual operating results, and continued to review our projections and significant assumptions around them. In addition, we met milestones for appraisals, valuations, and other lender requirements. Because we kept our client informed throughout the process, they were able to make critical decisions with confidence.

When closing day arrived, it was as if the chains had been lifted. With a lower-interest loan, the business owners were able to pay off other debts, which reduced future interest costs. They were also able to pay a group of shareholders that hadn’t seen a return on their investment in more than 10 years. It was truly a time of celebration for all.

With the new debt now secure for the long term, our client is free to run their business—no more answering to a lender. We can’t wait to see what their future holds.

Until next time,