Case Study
Nth Degree Helps Youth Sports Business Acquire Hockey Rink with No Money Spent, No Debt, and Virtually Zero Risk.
Case Study
Nth Degree Helps Youth Sports Business Acquire Hockey Rink with No Money Spent, No Debt, and Virtually No Risk.
Introduction:
When a youth sports business wanted to expand by purchasing a hockey rink, they initially planned to take out a large conventional loan. However, with Nth Degree's guidance, they discovered a more advantageous path.
About the Client:
Our client is a youth sports business bringing in around $4M in revenue annually. They rented hockey rinks to host their events, which exposed them to risk. They wanted to acquire a hockey rink of their own to diversify their business holdings and have greater control over the venue in which they host their sporting events.
The Challenge:
The $3 million price tag for the hockey rink seemed insurmountable. Taking out a conventional loan would have required personal guarantees from our client and come with significant risks:
Debt and interest payments could lead to negative cash flow for years.
Owners would be personally liable if the business struggled.
Running the rink would pull owners away from their core strengths.
The Nth Degree (UN)Conventional Approach:
Nth Degree worked closely with our client to develop a more advantageous strategy. We helped our client recognize that they could leverage a fundamental skill they had, that all their previous advisors overlooked: building and nurturing relationships.
With our guidance, our client found an investor who was willing to fund the purchase of the hockey rink in exchange for a minority stake in the business.
The Solution
Nth Degree helped our client structure a deal with game-changing terms:
Investor paid for the rink, eliminating the need for debt.
Our client retained 70% ownership; investor took 30% stake.
Investor remained a silent partner, not involved in day-to-day operations.
The Impact
This (UN)Conventional deal provided several significant benefits:
Our client acquired the rink with no money down and no personal guarantees.
Our client generated positive cash flow from day one thanks to having no debts to repay.
Our client maintained financial stability and flexibility to explore additional acquisitions.
As Dan Nicholson, mastermind behind Nth Degree CPAs notes, "It's all about understanding what really drives an entrepreneur's success. In this case, it was the client's ability to build relationships, not their hockey skills. By leveraging that strength, we were able to create a deal that met their goals while minimizing risk. That's the power of looking beyond the obvious and finding creative solutions."
The Counterfactual:
Had our client taken the conventional loan route, they would have been buried under debt and personal liability. Cash flow would have been strained, growth opportunities limited, and personal assets jeopardized if the business hit a rough patch.
This is just one example of how partnering with us at Nth Degree CPAs can help business owners achieve their wildest dreams with minimal risk. Our unparalleled ability to spot hidden opportunities and craft creative solutions sets us miles apart from the rest.
These are the facts:
If you're a $1M-$10M/year business owner who’s unable to grow because of debt/cash flow issues, and you’re willing to do what it takes to solve your challenges powerfully and permanently, the first step is getting your financial plan. There are likely (UN)Conventional strategies you ought to leverage that can result in improved cash flow, a profitable exit, and so much more.
If you’re ready to tap into our expertise for your benefit, you may consider booking a call and we’ll see if you’re a good fit to work with us.
Explore Nth Degree
Resources
Contact information
1809 7th Ave Ste 303
Seattle, WA 98101
4025 Delridge Way SW, Ste 320
Seattle, WA 98106
(206) 682-0281
2024 Nth Degree CPAs | All Rights Reserved
Introduction:
When a youth sports business wanted to expand by purchasing a hockey rink, they initially planned to take out a large conventional loan. However, with Nth Degree's guidance, they discovered a more advantageous path.
About the Client:
Our client is a youth sports business bringing in around $4M in revenue annually. They rented hockey rinks to host their events, which exposed them to risk. They wanted to acquire a hockey rink of their own to diversify their business holdings and have greater control over the venue in which they host their sporting events.
The Challenge:
The $3 million price tag for the hockey rink seemed insurmountable. Taking out a conventional loan would have required personal guarantees from our client and come with significant risks:
Debt and interest payments could lead to negative cash flow for years.
Owners would be personally liable if the business struggled.
Running the rink would pull owners away from their core strengths.
The Nth Degree (UN)Conventional Approach:
Nth Degree worked closely with our client to develop a more advantageous strategy. We helped our client recognize that they could leverage a fundamental skill they had, that all their previous advisors overlooked: building and nurturing relationships.
With our guidance, our client found an investor who was willing to fund the purchase of the hockey rink in exchange for a minority stake in the business.
The Solution
Nth Degree helped our client structure a deal with game-changing terms:
Investor paid for the rink, eliminating the need for debt.
Our client retained 70% ownership; investor took 30% stake.
Investor remained a silent partner, not involved in day-to-day operations.
The Impact
This (UN)Conventional deal provided several significant benefits:
Our client acquired the rink with no money down and no personal guarantees.
Our client generated positive cash flow from day one thanks to having no debts to repay.
Our client maintained financial stability and flexibility to explore additional acquisitions.
As Dan Nicholson, mastermind behind Nth Degree CPAs notes, "It's all about understanding what really drives an entrepreneur's success. In this case, it was the client's ability to build relationships, not their hockey skills. By leveraging that strength, we were able to create a deal that met their goals while minimizing risk. That's the power of looking beyond the obvious and finding creative solutions."
The Counterfactual:
Had our client taken the conventional loan route, they would have been buried under debt and personal liability. Cash flow would have been strained, growth opportunities limited, and personal assets jeopardized if the business hit a rough patch.
This is just one example of how partnering with us at Nth Degree CPAs can help business owners achieve their wildest dreams with minimal risk. Our unparalleled ability to spot hidden opportunities and craft creative solutions sets us miles apart from the rest.
These are the facts:
If you're a $1M-$10M/year business owner who’s unable to grow because of debt/cash flow issues, and you’re willing to do what it takes to solve your challenges powerfully and permanently, the first step is getting your financial plan. There are likely (UN)Conventional strategies you ought to leverage that can result in improved cash flow, debt eradication, a profitable exit, and so much more.
If you’re ready to tap into our expertise for your benefit, you may consider booking a call and we’ll see if you’re a good fit to work with us.