Sale-Leaseback Financing
What is sale-leaseback financing?
The sale-leaseback is a form of financing in which a company sells its real estate for cash and simultaneously signs a long-term lease with the buyer.
Sale-leasebacks enable companies to realize 100 percent of the true market value of their corporate facilities and re-deploy that capital into their core business.
Consider the following:
Challenge
- Company seeks financing for recapitalization, refinancing, an acquisition, shareholder distributions or growth:
Solution
- 100 percent full market value of real estate paid in cash
- Long-term operational control of corporate facilities
Sale-Leaseback Advantages
- Immediate access to capital
- 100 percent market value realization of otherwise illiquid assets
- Potential to keep transaction off balance sheet
- Continued operational control of facilities
- Increased Return on Assets (ROA)
- Increased Return on Invested Capital (ROIC)
- Increased borrowing capacity through strengthened balance sheet
Innovative Financing For
- Debt Reduction
- Mergers & Acquisitions
- Leveraged/Management Buyouts
- Corporate Restructuring/Exit Financing
- Acquiring additional facilities, technology and equipment to grow the business
- Constructing new facilities
- Transition out of a synthetic lease, mortgage, or other binding debt instrument
- Matching long-term assets with long-term liabilities
