Leasebacks in Focus
Leasebacks are agreements where sellers of assets lease assets back from buyers. With leaseback arrangements, the arrangement details, like the duration of leases and lease payments, are decided straight after the asset sale. Basically, the asset sellers become the lessees, and the buyers become the lessors.
Your assets should work as hard as you do. If you have properties, then use them to leap ahead of the competition or get out of a challenging situation. We can help you arrange a sale-leaseback to maximize your building’s potential while minimizing disruption to your business.
At first glance, some people believe that a sale leaseback agreement benefits the person selling more than anything. After all, this is a quick way to generate cash, find alternative financing, and improve the financial books overall. However, there are just as many reasons for a buyer to enter an agreement as well.
In a sale-leaseback agreement, the seller of a property becomes a leaseholder to a new owner, maintaining a management agreement but avoiding certain economic risks.How does a purchase leaseback work?