Save EUR 225,900 in financing costs on a EUR 2.5M investment?
π Leasing can win on price too!
Dear CFOs, dear Treasurers,
I am well aware that financing options are often evaluated based on the famous three criteria:
1. Price
2. Price
3. Price
while the many other advantages of leasing β such as longer tenors, diversification, balance sheet and KPI optimization, and resilience β tend to receive less weight.
You may be wondering specifically:
πΉ What advantages does leasing offer my company, and
πΉ why should I engage #LeasingPilot?
Using a concrete example, I can express the value of our advisory services in real numbers:
Our client (with a PE fund as shareholder for 2 years; operating in a sector with a rather negative market perception) invested in a machine with an acquisition cost of EUR 2.5M.
The group has a typical LBO financing structure with a senior leverage of 4.4x.
Our solution:
πΉ Leasing (partial amortization agreement with vendor option)
πΉ 72-month term (significantly longer than the syndicated loan agreement)
πΉ 10% residual value
π Interest advantage of approx. EUR 225,900 compared to drawing on the revolver
As a rule of thumb for your investment projects:
π That equates to approximately EUR 90,000 in savings potential per EUR 1.0M of investment volume!
We consistently deliver savings of this magnitude!
Let's talk!
#ValueCreation #PrivateEquity #LBO #CFO #Treasury
Save EUR 225,900 in financing costs on a EUR 2.5M investment?