Patience, Planning & Perseverance: A Client Success Story

Mike Fassler
Mike Fassler

During the first quarter of this year I had the great privilege of witnessing a significant accomplishment by a long time client.  I started working with this family in the late 1980’s as they were contemplating exiting their business due to some feedback from their lender and general frustrations with short cash flow.  They asked me to take a look at their situation and share my assessment and recommendations.

Their lender had indicated that since they were not able to “zero out” their operating loan once a year from the operating cash flow of their business, this suggested they were not making money.  The lender further argued that if they were not making money they should consider exiting their business.  My client was alarmed and considering an exit.  I dug into the numbers and had extensive discussions with the client.  My analysis indicated that in fact they were very profitable but the combination of their growth rate and the structure of their balance sheet was creating their liquidity challenges.  I shared with them that they were bankable and they could likely have their choice of lenders.  They shopped their financing package and were presented with financing offers from 3 different lenders.  The flood of emotional relief this family experienced upon refinancing was moving.

Fast forward to the first quarter of this year, 25+ years later, to the incredible experience for me.  At our annual planning meeting where we were reviewing their financial statements, this client proudly shared that as of this past December they had completely paid off all of their debt.  Their personal equity position is now over “8 figures”, they have plenty of liquid assets, and their business continues to churn out positive earnings and cash flow.  We spent the meeting discussing the future for them personally, for their family and for the business.  The pressures they now face are around stewardship of their sizable equity position, and making choices between options – enjoyable challenges to consider.  It has been my privilege to serve this family along their remarkable journey of success.

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