Sale Leasebacks Offer an Attractive Financing Option
July 23, 2023 – SLB Capital Advisors provided perspectives to Industrial Equipment News with respect to sale leasebacks for industrial equipment manufacturers
- Matt Wrobleski, Partner at SLB Capital Advisors, provided perspective to Industrial Equipment News with respect to sale leasebacks for industrial equipment manufacturers
- “While traditional debt costs have increased, manufacturing firms with owned real estate may have a more attractive alternative at their disposal. Right now, sale leasebacks of owned real estate may represent a lower cost option worth exploring.
- . . . by accessing lower cost capital, a company has the opportunity to lower its overall weighted average cost of capital or WACC, improving shareholder returns.”
- “For middle market businesses that own real estate, the sale leaseback may be an attractive tool to unlock capital for deleveraging, growth or M&A. Additionally, it may be a much lower cost option than traditional bank debt. Sourcing sale leaseback capital in lieu of traditional debt capital may improve the weighted average cost of capital of the company as well as profitability.”
- Read the full article here.