SALE LEASEBACK

Hermes has deep expertise in the structure and placement of tax-deferred sale-leaseback finance. A sale-leaseback monetizes a company’s real estate assets, freeing up capital to invest in its higher-returning core business, or pay a dividend to shareholders. It can also be a lucrative option for buying back corporate stock, paying down debt, or simply reallocating capital into more productive uses.

Tax-Deferred Transactions are structured in compliance with IRC § 1031 and FASB ASC 842 and formulated to optimize value and obviate the necessity of acquiring the replacement property.

Hermes is committed to providing sound financial resources and operational expertise to transform undervalued or distressed real estate into growth possibilities or solid operating ventures. We bring significant intellectual property and advisory experience in the Primary real estate markets and especially Sale Leasebacks.

16 benefits of using a Sale Leaseback Structure

  • 1. Converts equity into cash.
  • 2. Allows the business to reallocate use of assets and cash.
  • 3. Retains use of property on a long-term basis.
  • 4. Receives more capital 100% verse 50% to 70% with conventional mortgage.
  • 5. Structuring the lease terms can be much more flexible to parties needs and wants.
  • 6. It can be structured to defer capital gains.
  • 7. Long term the financing can be fixed without a balloon, costs, changing rates, or call provisions to refinance.
  • 8. Improves balance sheet and Credit standing.
  • 9. Can be structured off balance sheet.
  • 10. Should result in an increase in the sellers current ratios and balance sheet.
  • 11. Avoids a debt restructuring.
  • 12. If lease is classified as an operating lease the rental does not appear as a liability.
  • 13. Allows for deleveraging.
  • 14. Rental payments are fully deductible.
  • 15. Recapitalize your business without+ giving up equity.
  • 16. Dividend recap to provide money for your investors.
SALE LEASEBACK

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