Investor Portal

Sale-Leasebacks for Business Succession Planning

  • Articles, Press, Sale-Leasebacks, Transaction updates

Sale-leaseback transactions can be an effective tool for succession planning in a business. Succession planning refers to the process of identifying and preparing a successor to take over the management of a business.

One way a sale-leaseback can be used in succession planning is by providing a way for the current owner of the business to extract value from the business while still maintaining control. For example, the owner could sell the company’s real estate to a third party through a sale-leaseback transaction and then lease the property back from the buyer. This provides the owner with immediate cash, while still allowing them to continue operating the business on the same property.

Additionally, a sale-leaseback transaction can provide a way for the successor to take over the business gradually. For example, the owner could sell a portion of the business’s assets, such as the equipment or real estate, through a sale-leaseback transaction and then lease those assets back from the buyer. This provides the successor with the opportunity to gain experience running the business while the current owner retains some control.

Finally, a sale-leaseback can also be used to provide the successor with capital to invest in the business. By selling an asset and leasing it back, the business can free up capital that can be used to invest in growth opportunities, such as expanding the business or developing new products or services.

In conclusion, sale-leaseback transactions can be a useful tool for succession planning in a business. By providing a way for the current owner to extract value from the business while maintaining control, and for the successor to gradually take over the business and invest in its growth, a sale-leaseback can help ensure a smooth transition of ownership and management. However, as with any financial transaction, it is important to carefully consider the potential benefits and risks before deciding whether a sale-leaseback is the right choice for your succession planning needs.

Share

More Articles

Opportunity Cost of Equity in CRE: A Guide for Business Owners

Sale-Leaseback: An Innovative Way to Unlock Capital for Business

Investor Portal

Neil Albritton

Partner / Raleigh, NC

As a Partner at Haven and a member of the Executive Committee, Neil brings extensive expertise in commercial real estate, backed by more than 17 years of experience. 

Over the past decade, he has specialized in sourcing, structuring, underwriting, and executing sale-leaseback transactions. His leadership has been instrumental in closing over 500 deals for both privately held and public real estate investment firms, contributing to more than $6 billion in gross transaction volume.

Before joining Haven, Neil served as Senior Vice President and Head of Acquisitions at STORE Capital. In that role, he was a voting member of the company’s Investment Committee, managed a team of up to 15 acquisition professionals, and led the disposition strategy.

Neil holds a B.S. in Business Finance from Elon University.

Matt McParland

Senior Vice President, Acquisitions / Chicago, IL

As Senior Vice President of Acquisitions and head of Haven’s Chicago office, Matt is responsible for originating new sale-leaseback opportunities for the company, bringing over 9 years of real estate advisory experience to the firm. Prior to joining Haven, Matt served as Vice President in the Net Lease Investment group at Mid-America Real Estate, a Midwest advisory firm specializing in the acquisition and disposition of retail properties throughout the United States. Throughout his career, Matt has facilitated more than $400 million in total real estate transaction volume.

Matt received a B.S. from The University of Iowa and is a licensed real estate broker in the State of Illinois.

John Bradley

partner / Franklin, tn

As a Partner of Haven, John is the head of originations for the company. He is also a member of Haven’s Executive Committee.

Prior to Haven, Mr. Bradley led acquisitions for the Central U.S. at PennyMac Financial Services (NYSE: PFSI), a publicly traded mortgage REIT, where he facilitated the aggregation of $500 million in residential and commercial loans. Before his time at PennyMac, John spent seven years in acquisitions at Essent Mortgage Guaranty Inc. (NYSE: ESNT), a publicly traded mortgage insurer and reinsurer. During his time at Essent, John insured $3 billion in GSE-backed mortgages.

John holds a B.S. from Niagara University. He previously served on the Board of Directors at the Illinois Mortgage Bankers Association from 2017-2020 and as Chairman of the Affordable Housing Committee (2014-2020).