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Private Equity’s Opaque World

Motley Fool Money

The Importance of Sale Leasebacks in Private Equity Companies

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The second item in the bag of tricks, after that dive, you can go so many places with this conversation. In a sale leaseback, the private equity firm will direct the company to sell its underlying assets and then lease it back. The company that emerges from private equity ownership may just not be as strong or as valuable a company as it was when it entered. But sale leasebacks are a way to make a quick hit of money in the short term but it can be a drag on the company in the long term.

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