CONFIDENTIAL, MAXIMUM VALUE, BUYER MATCH
Recapitalization is a transaction in which the owner of a property sells the real estate then leases it back from the buyer to operate the business
Most businesses are not in the business of owning real estate but need the utility of land and buildings to perform their services. Recapitalization, also referred to as a sale-leaseback, enables a company to reduce its investments in the non-core business assets of land and building to liberate the cash in exchange for executing a lease and paying rent. This separates the asset’s value from the asset’s utility value in a company’s real estate investment.
HOW RECAPITALIZATION WORKS
Recapitalization is not complicated. ESI provides complimentary recapitalization valuations to seniors housing and skilled nursing business owners.
1. An owner sells their property to a buyer, then immediately leases it back at a determined rate
2. Both buyer and seller are mutually invested in the success of the business
3. The seller now specializes in being an operator, not a property owner with the untied cash
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