Can a Sale-Leaseback transaction improve my companies financial image?
In short, Yes. Real estate holdings appear on a company’s balance sheet as fixed assets. If the company has a mortgage on the property, any outstanding debt will appear as a liability, offsetting the value of the asset/property. Because these assets are predominately illiquid, they produce little if any return in the form of available capital, an important factor when evaluating a company’s standing. K.E. Dittmar Company Sale-Leaseback Transactions can replace these assets with cash, it can also remove liabilities associated with the real estate our client’s balance sheet. Sale-Leaseback financing does not add debt to the balance sheet. Since lease expenses are factored into a company’s net income calculation, they do not appear as a liability. How does a typical Sale-Leaseback with K.E. Dittmar Company Inc., occur? The business in need of a sale-leaseback would contact K.E. Dittmar Company Inc., we would then meet with this prospect and discuss the sale-leaseback time frame and other
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