Sale Leaseback
A Sale-Leaseback is an alternative financing solution that helps a company unlock the equity tied
up in their fixed assets. Business owners receive 100% of their equity (at the current fair market
value of the asset) while retaining control of the asset by selling it to an external investor in
exchange for a long-term lease on that asset. Corporate Financial
Advisors can help its clients realize substantial value in a number of asset categories, such as:
real estate, machinery, fixtures, transportation equipment and/or a fleet of company vehicles. A typical client of
Corporate Financial Advisors has commercial or industrial assets with values of $1-$10
million. The benefits of participating in a Sale-Leaseback transaction are as follows:
- Improves liquidity that can be used for working capital;
- Generates capital to finance growth, purchase new equipment, add a new product line or make a strategic acquisition of another business or location;
- Facilitate the repurchase corporate stock or buy out a partner utilizing company assets;
- Creates an exit strategy of the real estate for personal liquidity;
- Diversifies an owner’s holdings by taking advantage of current asset values in the marketplace;
- Allows for the pay down of debt and improves balance sheet leverage;
- Enables an owner to meet lender while maintaining control of the business; or
- Provides for meaningful tax benefits.