LeasingPilot brings together what belongs together!
In a nutshell: LBO companies can reduce their financing costs!
Just like in real life, you often have to get to know each other better first to find out how well you get on!
In leveraged buyouts, leases, if used at all, play only a very minor role.
👉 The opportunity to raise additional lease financings stipulated in the Finance Documents (‘leasing basket’ in the definition of Permitted Financial Indebtedness of the SFA) is generally not utilised to its full strategic potential.
That’s how easily achievable benefits are squandered!
👉 Leasing offers financial, legal and tax advantages that make it the perfect complement to an LBO financing structure!
👉 When structured correctly, lease financings offer significantly lower margins – in some cases as much as 30–40 per cent lower – than the margins on tranche A or RCF!
👉 Moreover, finance leases enables the financing of assets to be aligned with the relevant useful economic lifetime – extending beyond the final maturity of the acquisition financing or an exit!
Make the most of these opportunities!
Let’s have a chat!
#LBO #PrivateEquity #ValueCreation #Treasury #CFO
LeasingPilot brings together what belongs together!
