How can Ashdown help?
About Financing Business Growth “ Our core value is simple: Get our customers the right deal from our established network of financing partners. That value came from where the best ideas often come from - experience.” 2
Founders Founded the firm in 2017 having worked together at HSBC. Brad Kiendl Ryan Turner Partner Partner After working for banks for nearly a decade, Brad and Ryan realized they wanted to work on the other side of the fence and work with the businesses who needed financing, rather than for the lender. With their experience, they’ve developed strong relationships with a number of the top account managers at the banks and credit unions and knew this would be a huge resource to growing businesses. 3
Transaction experience Arranged more than $400 million of financing for businesses in the BC lower mid-market. Exclusive Advisor Exclusive Advisor Exclusive Advisor Exclusive Advisor Working capital financing. Term debt and working Owner Occupied Working capital financing. capital financing. Construction Financing Exclusive Advisor Exclusive Advisor Exclusive Advisor Exclusive Advisor Advisory CMHC Construction Purchase of land and Acquisition financing. Negotiated range of Financing buildings. financing solutions. 4
Real Estate Investing in commercial real estate can be a great long-term investment. It can help diversify a retirement portfolio, it creates more asset value in a business, and it can be leaned on for refinancing if other opportunities present themselves. Ashdown can work with your clients to purchase or build their commercial real estate instead of leasing, or can help secure financing for an investor owned property. We work with companies to determine what level of financing they could qualify for, and then find the right lender for their needs. • Owner occupied • Investor owned • Commercial/Industrial Construction • Refinancing 5 5
Equipment Finance Ashdown has relationships with various types of lenders for all your clients’ equipment financing needs. From banks and credit unions for businesses with a solid track record, to private funds for less established businesses, Ashdown will work with each company to find the best equipment financing solution for: • Heavy Equipment • Transportation Equipment • Manufacturing Equipment • Brewery Equipment • Computers, peripherals, & software 6
Working Capital Lack of liquidity and working capital should never be the reason a business turns down a sale! Every company needs working capital to support their day- to-day operations. We take an in depth look at your clients’ business cash flow cycle and help identify gaps that require working capital funding. Then we find the best possible financing solution for the business. • Operating lines of credit • Trade finance • Purchase Order financing • Cash flow financing 7
Example Initial Financing Negotiated Financing Change Annual Payments $250,240 $250,240 $0 Mortgage $3,751,730 $3,992,360 $240,360 LTV 75% 75% 0% On a $5,000,000 Building Cost $5,000,000 $5,290,000 $290,000 purchase, decreasing the rate by 60bps results in 6% increase Initial Financing Negotiated Financing Change in purchasing power. Annual Payments $333,408 $333,408 $0 Mortgage $5,000,000 $5,319,232 $319,232 LTV 100% 100% 0% Building Cost $5,000,000 $5,319,232 $319,232 8 8
Case Study We were introduced to the group through a local law firm, and we were able to introduce them to a product they had not yet used. CMHC newly introduced the Affordable Construction program that allowed Borrower’s access to CMHC’s insured borrowing rates while keeping premiums lower than traditional construction loans. In return, Wiebe would offer their units at a discount to the community- a win for Wiebe, and a win for the community. Wiebe saw this as a great fit for their next multi-family development and engaged us to assist them through the process. We worked through multiple scenarios with the Company to come up with the right structure for their development. Once we had come up with the structure we wanted, we obtained discussion papers from three CMHC “Having Ashdown help us navigate through this new “Having Ashdown help us navigate through this new approved lenders, and ultimately helped pick the right partner for the CMHC program was invaluable . They helped make the CMHC program was invaluable . They helped make the project. We worked closely with both the Lender and Wiebe’s CFO through entire process smoother, including fielding questions entire process smoother, including fielding questions from the lender. They negotiated and advocated on our from the lender. They negotiated and advocated on our the various stages to get the deal across the finish line. behalf, producing outcomes and solutions that would behalf, producing outcomes and solutions that would have been more difficult to achieve had we been have been more difficult to achieve had we been negotiating on our own. Ryan was a pleasure to work negotiating on our own. Ryan was a pleasure to work with, and we felt confident having him on our side. I with, and we felt confident having him on our side. I would not hesitate in recommending Ryan and his team would not hesitate in recommending Ryan and his team to any developer that is looking for financing, CMHC or to any developer that is looking for financing, CMHC or 9 otherwise.” – Lara Holtby, CFO otherwise.” – Lara Holtby, CFO 9
Case Study Heritage approached Ashdown to find a lender that was willing to work with them and believed in their vision of bringing an affordable, environmentally sustainable cemetery to market. Cemetery land is unique as land with a Right of Internment on title cannot be developed into anything other than a cemetery, so it is only “worth” what a cemetery operator can sell the individual plots for. We needed to find a lender that believed in the Crean’s vision and could support them through to the final plot sale. Since cemetery land could not be valued using traditional appraisal techniques, we worked with an appraiser to issue an appraisal that only considered the discounted cash flow of the revenue stream. We then structured the loan as if it was condo development, with the loan being paid back as the plots were sold. We went to market and found a lender that was willing to lend against this discounted cash flow, with a term that matched the projected sales of the cemetery. In the end, the lender believed in their long-term vision and gave them favourable pricing and terms to see their concept come to fruition. 10 10
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