Companies consider sale leasebacks for a wide range of reasons.
There is often an underlying arbitrage to be captured between the business EBITDA multiple and the effective real estate multiple
- Average sale leaseback cap rates imply multiples of 12x – 16x
In cases where a company’s EBITDA multiple is lower than the real estate multiple, value can be created for the owner by executing a sale leaseback.
Some of the many other sale leaseback drivers are listed below:
|General Strategic & Financial Drivers||M&A-Related Factors|