---
alternate_lang: de
date_added: '2026-06-08T06:51:04.800000+00:00'
date_modified: '2026-07-06T10:02:06.613358+00:00'
description: 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
  f
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- LinkedIn
lang: en
title: Why do many leasing companies reject LBOs?
type: article
url: http://leasing-pilot.com/en/news/why-do-many-leasing-companies-reject-lbos/
---



1. [News](/en/news/)
2. Why do many leasing companies reject LBOs?

# Why do many leasing companies reject LBOs?

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 f

![Why do many leasing companies reject LBOs?](/media/thumbs/news_image/linkedin-5889601037.webp.400x400_q85.webp)


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

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