ASCENSION ADVISORY
Real Estate Sale Leasebacks For Financial Sponsors & Business Owners
Get the most out of your balance sheet assets by converting real estate into flexible, non-dilutive capital.
WHY BUSINESSES PARTNER WITH US
Sale Leaseback Experts
Our specialization in the art of the sale leaseback strategy sets us apart. With backgrounds in private equity, investment banking, management consulting, and real estate investing, our team has the expertise to structure and execute even the most complicated sale leaseback transactions.
WHAT IS A SALE LEASEBACK
Unlocking Capital for Growth
A sale leaseback allows businesses to sell their property while simultaneously leasing it back, providing immediate liquidity for the company without giving up operational control. This strategic financing tool empowers businesses to reinvest in their core operations, fund business expansions, or optimize their balance sheets by paying down debt, all while remaining in their current location.
WHY BUSINESSES CHOOSE THE SALE LEASEBACK
Strategic Advantages
✔ Redeploy capital into highest and best use ✔ Liquidity through non-dilutive financing ✔ Flex financing without covenants
✔ Flex financing without personal guaranties
✔ 100% of asset market value vs. a mortgage ✔ Cheaper than other financing alternatives ✔ Create equity value through arbitrage of EBITDA vs. Cap Rate multiples
HOW BUSINESSES DEPLOY PROCEEDS
Uses of Funds
Businesses use sale leaseback proceeds to fund expansions of existing facilities or new locations, invest in equipment and capital expenditures, pay down expensive debt, redeploy into core business operations, or even take chips off the table for stakeholders.
Financial Sponsors can also leverage sale leaseback proceeds to finance M&A transactions and buy down their acquisition EBITDA multiples.
Frequent Sale Leaseback Questions
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What is a sale leaseback?
A sale leaseback is a financial transaction where a company sells an asset, typically real estate, to an investor and then leases it back for a long-term period. This allows the company to continue using the asset while also unlocking the capital tied up in it.
Why do companies choose sale leasebacks?
Private Equity Firms and Business Owners opt for sale leasebacks for several reasons, including the need to free up capital for reinvestment in their core business, improve liquidity, optimize balance sheet structure, and potentially benefit from tax advantages. This approach can also allow for more flexible financing options compared to traditional debt financing.
What are the benefits of a sale leaseback?
The primary benefits include immediate access to capital, off-balance sheet financing, potential tax benefits, and the ability to focus on core business activities without the capital constraints of owning real estate. It can also improve certain financial ratios, making the company more attractive to investors.
What criteria do investors look for in a sale leaseback transaction?
Investors evaluate the creditworthiness of the company, the quality and location of the property, the stability of the company's business, and the attractiveness of the lease terms, including rent, duration, and renewal options.
How can a sale leaseback impact a company’s balance sheet?
A sale leaseback can positively impact the balance sheet by converting a fixed asset into liquid capital, thereby improving liquidity ratios. While the lease obligations are recorded as liabilities, the overall effect can be a stronger financial position and improved operational flexibility.
Can a sale leaseback arrangement be customized?
Yes, sale leaseback terms are highly customizable. Ascension Advisory can help negotiate lease lengths, payment schedules, and other terms to align with the company's strategic financial plans, operational needs, and future growth projections.
Are sale leasebacks suitable for all industries?
While sale leasebacks can be beneficial across various industries, they are particularly common in sectors where the real estate is mission-critical to the operating company, such as retail, manufacturing, and logistics. The suitability can depend on the company's financial goals, industry stability, and the strategic value of retaining operational control over the property.
Ascension Learning
Master New Creative Financing Strategies
Our Network Yields Synergies
Ascension Advisory sits at the intersection of three distinct verticals, Private Equity & Financial Sponsors, Business Owners, and Referral Partners, providing unmatched synergies for our partners.
Private Equity & Financial Sponsors
As an Ascension partner, whether you're a private equity firm, family office, independent sponsor, search fund or holding company, you'll have access to proprietary investment opportunities from our network of business owner clients and referral partners. Learn More
Private Equity & Financial Sponsors
As an Ascension partner, whether you're a private equity firm, family office, independent sponsor, search fund or holding company, you'll also have access to proprietary investment opportunities from our network of business owner clients and referral partners. Learn More
Business Owners
We help all types of businesses take advantage of the many benefits of the sale leaseback strategy. We provide business owners with creative liquidity solutions, tapping into flexible financing sources that can be used to fuel growth. As an Ascension partner, you’ll also have access to our extensive network of capital partners, M&A firms, and other strategic advisors. Learn More
Referral Partners
We provide real estate advice to you and your clients, whether during the pitching stage, a live transaction, or just for their general knowledge and awareness. As as Ascension partner, you’ll benefit as a preferred provider in our network as we facilitate introductions to business owners, private equity firms, and others seeking your specific services. Learn More
Notable Sale Leaseback Transactions
Ascension Advisory has successfully executed prominent sale leaseback transactions across the globe, providing strategic value to our clients. Below is a curated selection of key deals that showcase our expertise and impact.
Outdoor Storage
Our team worked with Olympus Partners to run a sale leaseback for 23 production and outdoor storage sites owned and operated by Tank Holding Corp.
Auto Dealership
We worked with Dennis & Co. to structure sale leasebacks of acquisition target real estate, integrating this strategy with M&A to drive business expansion.
Fruit Manufacturer
The team partnered with a leading European fruit production company to execute a sale leaseback of its facilities, unlocking capital to support growth and operational investments.
Life Support Technology
We helped Spring Mountain Capital exercise a purchase option of Micropore's facility and executed a sale leaseback, generating a $3.2 million spread.
Hear From Our Clients
"Ascension left me thoroughly impressed with the team’s performance throughout the lifecycle of our sale leaseback transaction. Their team was efficient, knowledgeable, and highly organized...We look forward to working with them in the future."
"It was great working with Chelsea and her team. The way that they were able to handle the unique challenges faced in this transaction was impressive. I am confident that we delivered the maximum value for the sellers, the buyers and our operating entity."
"This sale leaseback was very important for the Company. It unlocked meaningful capital for us to redeploy into higher ROI opportunities that will help drive the Company's growth for years to come. The Ascension team was integral to making this possible."
"Our goal with the sale leaseback was to position the company to continue investing in advanced technologies and to fund growth. Our success and timing in closing the sale leaseback is a testament to Ascension’s expertise and partnership."
"The Ascension team did a great job leading us through this sale leaseback transaction on behalf of the company. The company signed a long-term lease at the facility, demonstrating the business’s commitment to this site."
"The Ascension team delivers reliable and timely execution with attentive and highly responsive service. We trust the Ascension Advisory team to move quickly to achieve our real estate-related objectives."
"Ascension delivered an excellent SLB outcome on an accelerated timeline that tracked our M&A process. As such, we were able to consummate a RE deal simultaneously with our M&A transaction and helped us fund the M&A deal."
"We have worked with Ascension in the past, and have always had a very strong experience. Very strong attention to detail, real-time communication, work ethic, and an excellent grasp of the market are a few of the reasons I continue to work with Ascension."
"The Ascension team supported us every step of the way during our process. The deal team was very helpful in keeping this transaction on track and worked diligently with all parties involved toward a successful close."
"The Ascension team has an amazing ability to parse the complexity out of any transaction providing for a smooth glide to a closing. There is no way we would have achieved even a fragment of our success without them."
“Chelsea and her team did a great job. This transaction provides additional capital allowing us to continue reinvestment into our business that has seen tremendous growth over the last 12 months.”
"Ascension has allowed us to turbocharge our business expansion. In fact, our last SLB deal was nothing short of incredible – we used the entire sale leaseback proceeds to fund the acquisition of the entire dealership operations – no cash outlay required."
"I enjoyed our experience working with Ascension. I would recommend Ascension again to be used by our firm or will suggest you all to other PE firms that ask for recommendations."
“Ascension Advisory was instrumental in helping Whisker achieve a successful real estate sale leaseback transaction during an increasingly challenging macro environment.”
"It was a pleasure working with the Ascension Advisory team on Dirty Dog's Car Wash recent sale leaseback transaction! Great team. Great results."
"The Ascension team delivered on everything they proposed and hit the aggressive timeline we asked for. Their thoroughness and professionalism throughout the process was fantastic and we won’t hesitate to work with them again."
"Ascension were not only on top of every detail during the transaction process but also successfully generated strong interest in our assets. They navigated our various offers effectively and ultimately provided us with speed and certainty of closing."
"Ascension delivered exactly what they promised. Very professional, on the ball and easy to work with."
"We appreciated Ascension's ability to line up a first-rate, institutional investor and helping us navigate through the entire process."
"We completed a very complicated sale leaseback transaction involving a purchase option with seller. Ascension kept the team together between attorneys from the buyer, seller, and our company, and kept the deal moving. We closed 30 days earlier than originally planned. Job well done!"
"Our ability to unlock immediate value through the sale leaseback opportunity in the Ansh Labs transaction will allow us the flexibility to focus our attention on continued investment into the business and for servicing our customers in the healthcare and diagnostic space."
"As a global leader... we are thrilled to provide our world class employees a world class facility. This facility has been specifically designed to optimize our efficiencies in all areas of production and to further enhance quality for our customers."
"I appreciated the persistence in driving all parties to advance their work and shorten what would have otherwise been an even longer process. Thanks again"
The Ascension Advisory team was great at keeping our transaction moving forward. We appreciated their insight throughout the process."
"I cannot speak highly enough about the overall value, displayed professionalism, sage counsel, steady hands, and appreciated execution of your growing firm. Thanks to Ascension and, more importantly, to each of you personally, for your partnership."
Why Businesses Prefer Sale Leasebacks
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Higher & Better Use of Capital
Maximize company value by reinvesting sale leaseback proceeds back into the core operating business.
Arbitrage & Value Creation
Take advantage of attractive cap rates that imply higher multiples than the multiple at which your operating business is valued.
Balance Sheet Optimization
Use sale leaseback proceeds to pay down expensive debt, strengthening your company's balance sheet.
Attractive Financing Alternative
Sale leaseback financing can provide a business with a cheaper cost of capital than traditional debt financing.
Source of Expansion Funding
Sale leasebacks can be used to fund facility expansions as well as acquisitions of new companies and locations.
Liquidity Solution
Sale leasebacks can provide an attractive source of liquidity for growing businesses and portfolio companies.