Why do many leasing companies reject LBOs?
It comes down to business strategy or a lack of understanding!
Time and again, we hear similar negative experiences from our PE clients regarding leasing companies:
Their leasing requests (excluding vehicles) have always been rejected — sometimes immediately, but usually only after a lengthy review process.
Unless LBOs are already excluded by the leasing company's business strategy, the risk decision-makers typically base their rejection on the group's annual financial statements at the level of the acquisition SPV:
🔹 The net income (under HGB) is negative due to goodwill amortization, and
🔹 when goodwill is deducted from the group's equity, that figure is negative as well.
The result: unnecessary effort and frustration on both sides.
This is where we can help:
#LeasingPilot understands both sides:
🔹 the logic of LBO structures, and
🔹 the risk assessment processes of leasing companies.
We firmly believe that LBOs represent the best client group for leasing companies!
We approach the right financing partners — independently, in a structured manner, and efficiently — and support the financing process from structuring through to execution.
The result:
👉 Our PE clients fully utilize the leasing basket within their credit agreements — and save an average of 15–35% in financing costs for new lease financings compared to Tranche A or revolving credit facilities (RCF).
👉 LBOs subject to the #InterestBarrier achieve even greater savings!
Are you the CFO or Treasurer of an LBO?
Are you an Investment Director at a PE fund?
Then we should talk!
#PrivateEquity #LBO #CFO #Treasury
Why do many leasing companies reject LBOs?
