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It ain’t broke, don’t fix it

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Presents the case for using a sale leaseback for corporate assets.

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It ain’t broke, don’t fix it

  1. 1. “It ain’t broke, don’t fix it!”
  2. 2. “Underutilized Resources?”
  3. 3. “Is that real estate earning as much as those dollarscan make in my business?”
  4. 4. Property types that lend themselves to sale leasebacks are: • Freestanding single-occupancy buildings • Industrial warehouse/distribution • Research & Medical • Development facilities • Corporate offices • Most retail
  5. 5. Straightforward Evaluation of the OpportunityBenefits to Owner/User/Seller: Concerns for Owner/User/Seller: • Converts real estate asset to cash • Possible impact from capital gains • Retain control and utilization of property • Lease provisions too restrictive • Replaces book value with cash • Inability to sell the property with the business • Lease on balance sheet as footnote* • Inability to continue occupancy • Avoids costs of conventional debt financing • Loss of any future appreciation • Avoids debt on balance sheet as primary liability • Potential of vacating property early • Lease payments are tax deductible • An exit strategy for business & assets

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