Sale-Leaseback Advisory

A sale-leaseback allows business owners to convert illiquid real estate assets into cash, providing immediate access to significant funds. This capital can be reinvested into the business, used to reduce debt, or allocated toward growth opportunities, all without taking on additional liabilities. It’s an effective way to leverage the value of owned real estate for business needs.

Structuring a property sale as a sale-leaseback introduces a long-term lease arrangement that enhances the asset's value and marketability. This approach is especially critical when planning a business sale or acquisition, as properties without such structures often experience diminished valuations.

A sale-leaseback enables business owners to unlock equity tied up in real estate and reinvest it into their business to drive growth and improve return on equity. This strategy allows companies to capitalize on the value of their property while maintaining operational control, providing both financial flexibility and resources for expansion.

By removing real estate from the balance sheet, businesses can improve key financial ratios, such as return on assets (ROA) and debt-to-equity. This shift can make the company more attractive to investors and lenders, enhancing its financial health and access to capital markets.

Sale-leasebacks provide significant tax benefits. Lease payments are typically tax-deductible as an operating expense, reducing taxable income. Additionally, businesses can avoid large capital gains taxes from selling property by reinvesting sale proceeds strategically, further optimizing tax outcomes.