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% of the true market value of their corporate facilities and re-deploy that capital into their core business. 

  

Sale-Leaseback Advantages

• Immediate access to capital
• 100% 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