Case Study
Industrial Warehouse Acquisition – High-Leverage Real Estate Strategy
Size
$1.2M
Sector
Industrial
Capital Structure
100% Financed Mortgage
Role & Contribution
Full financing structuring, lender negotiation, 100% debt coverage
Client & Situation
The client is a woman entrepreneur who built her business from scratch and achieved significant milestones over the past several years, including recurring revenue growth of more than 20% in the last two years. As the business expanded, operational scale began to outgrow the leased warehouse space, creating a potential bottleneck for future growth.
Challenges / Pain Points
- The company operated with several large pieces of equipment that required secure storage during the off-season.
- Supply costs were rising consistently, and the firm needed the ability to stock materials in advance to meet growing customer demand.
- The Greater Vancouver market has a chronic shortage of small industrial warehouses, making it risky to rely on short-term leases.
- Despite strong business momentum, the owner did not believe a warehouse purchase was financially achievable under her current situation.
Role & Mandate
We were engaged to:
- Lead the warehouse acquisition financing strategy.
- Provide business growth guidance.
- Advise on personal financial planning, ensuring alignment between the owner’s personal capacity and business objectives.
What We Actually Did (Playbook)
- Performed a holistic assessment of both the business financial profile and the owner’s personal financial position.
- Identified that the company’s strong recurring revenue base, signed contracts for the upcoming season, and positive cash flow made a high-leverage financing structure feasible.
- Helped the owner compare the return on equity from owning a warehouse versus alternative passive investments, leading to a clearer long-term decision framework.
- Prepared full financial projections, lender packages, and credit analysis.
- Led negotiations with BDC to secure a high-leverage warehouse mortgage, leveraging the narrative of a woman-led, high-growth business to obtain favourable terms.
- Coached the owner on how to negotiate with a credit union to increase working capital facilities for the next season’s growth.
Capital Structure / Financing Package
- 90%+ leverage warehouse mortgage financed through BDC.
- Additional working capital facility increased by over $100K through the owner’s credit union.
- Structure designed to maintain liquidity while enabling real estate ownership
Quantified Outcomes
- $1M+ warehouse acquisition with a high-leverage structure.
- Secured increased working capital capacity to support next-season expansion.
- Strengthened the owner’s financial literacy, confidence, and decision-making capability, supporting future growth and investment decisions.
- The business now ranks #1 on Google Reviews in its industry in Greater Vancouver — reinforcing a strong brand supported by the right infrastructure and capital strategy.
Strategic Insight / Why It Matters
For companies under $5M in revenue, major investment decisions must be evaluated through both personal and business lenses.
A fully integrated approach — cash flow budgeting, tax planning, and strategic forecasting — is essential for unlocking “next-stage” growth and moving confidently into large capital purchases such as real estate.
What This Demonstrates About Our Capabilities
This engagement shows our ability to:
- Design high-leverage, lender-friendly capital structures for small but fast-growing companies.
- Combine CFO advisory with personal finance and tax literacy coaching for founder-led businesses.
- Help owners make informed strategic decisions by understanding both their business and personal goals.
- Elevate clients into their next stage of growth with a balance of strategy, financial modeling, negotiation, and storytelling.