- Country: United States
- Listed: June 7, 2015 7:36 pm
- Expires: This ad has expired
A Sale Leaseback occurs when a real estate owner sells the property it occupies to a buyer and simultaneously leases the property back under a lease. A sale leaseback is a financing mechanism for raising capital for a company’s growth. Motivating Factors for a Sale Leaseback:
Raise Capital to reinvest back into their core business. • Improve Financial Health and other financial ratios by paying down debt and improving liquidity, among other things. • Prepare for a Sale or Company Restructure to maximize seller proceeds or to minimize equity basis. • Reduce Property Ownership Risk by maintaining control over the property but limiting risk associated with market downturns or disaster.
Before using a Sale Leaseback as a financing tool, careful consideration must take place: • How much is my Real Estate worth? • How do I establish fair lease terms? • What are my Tax implications if I sell my property? • Will the new lease be considered a Capital Lease or an Operating Lease? • How will I manage the demands of the transaction while not hindering the operation of my business?
Choosing the correct adviser is key in weighing the pros and cons of the Sale Leaseback financing tool.
Contact us today!
A Recommendation of Jim Thomas, President of Fitness Management and Consulting
by Norm Cates, Club Insider Publisher and Tribal Leader Since 1993
Jim Thomas is a talented, experienced, dedicated, determined, and very professional expert in the health, racquet and sportsclub industry. A club industry veteran of over 30 years, Jim has been a Club Insider Contributing Author since March of 2006, when he joined our Club Insider Contributing Author Team. During that time Jim has written and contributed 50 articles which have been published during our 284 months of Club Insider publishing. Jim Thomas is a truly great asset to our publication, and to our wonderful industry, and he can be trusted to deliver great results, over and over, no matter what the challenge.
When is it Time to Sell Your Health Club or Gym?
Many factors will tell you when it is time:
- Owner’s “burn out” Owner’s or key employee’s health problems
- Business relocation or rerouting of expressways
- Lease expires and you do not want to renew for another term
- Changing technology Get estate in order
- Not interested in investing long-term capital
- Children do not want to enter family business
- Largest accounts in financial difficulty
- Bank unwilling to renew credit lines
- Supplier problems
- Staff problems
- Customer’s habits changing
- Seeks retirement
- Wants to cash out and go fishing
Whatever the reason, you will need to plan an orderly transition to new ownership with less involvement on your part.
For more info, please call us at 214-629-7223.