Sale and Leaseback Transaction definition: Copy, customize, and use instantly
Introduction
The term "Sale and Leaseback Transaction" refers to a financial arrangement where an entity sells an asset and simultaneously leases it back from the buyer. This type of transaction is often used for liquidity purposes, where the seller continues to use the asset while receiving immediate cash.
Below are various examples of how "Sale and Leaseback Transaction" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Sale and Leaseback Transaction" in general terms
This definition ties "Sale and Leaseback Transaction" to the general concept.
"Sale and Leaseback Transaction" means an arrangement in which the seller transfers ownership of an asset to a buyer and simultaneously enters into a lease agreement to continue using the asset under specified terms.
Definition of "Sale and Leaseback Transaction" for real estate
This definition connects "Sale and Leaseback Transaction" to real estate.
"Sale and Leaseback Transaction" refers to a real estate transaction where the seller sells a property and then leases it back from the buyer, retaining the use of the property while freeing up capital.
Definition of "Sale and Leaseback Transaction" for equipment
This definition links "Sale and Leaseback Transaction" to equipment financing.
"Sale and Leaseback Transaction" means the sale of equipment or machinery by the original owner to a purchaser, followed by a leaseback agreement that allows the original owner to continue using the equipment while receiving cash proceeds.
Definition of "Sale and Leaseback Transaction" for vehicles
This definition ties "Sale and Leaseback Transaction" to vehicle arrangements.
"Sale and Leaseback Transaction" refers to a transaction where a company sells its vehicles to a buyer and then enters into a lease agreement for the same vehicles, allowing it to maintain the use of the vehicles while gaining liquidity.
Definition of "Sale and Leaseback Transaction" for financial reporting
This definition connects "Sale and Leaseback Transaction" to accounting and financial reporting.
"Sale and Leaseback Transaction" means a transaction in which an asset is sold and then leased back, with the sale generating immediate funds and the leaseback reflecting a liability on the balance sheet of the seller.
Definition of "Sale and Leaseback Transaction" for capital raising
This definition links "Sale and Leaseback Transaction" to capital raising efforts.
"Sale and Leaseback Transaction" refers to a financial strategy where a company sells assets and leases them back in order to raise capital, often improving liquidity without giving up the use of the asset.
Definition of "Sale and Leaseback Transaction" for tax purposes
This definition ties "Sale and Leaseback Transaction" to tax considerations.
"Sale and Leaseback Transaction" means a sale of an asset where the seller retains the right to use the asset through a lease agreement, often structured to provide tax benefits related to depreciation and expenses.
Definition of "Sale and Leaseback Transaction" in a corporate restructuring
This definition connects "Sale and Leaseback Transaction" to corporate restructuring.
"Sale and Leaseback Transaction" refers to the sale of company-owned assets, followed by leasing those assets back, typically used during corporate restructuring to generate immediate cash flow while maintaining operational capabilities.
Definition of "Sale and Leaseback Transaction" for large corporations
This definition links "Sale and Leaseback Transaction" to corporate strategy.
"Sale and Leaseback Transaction" means the sale of significant assets, such as office buildings or machinery, to an investor, who then leases them back to the seller, helping the corporation manage its cash flow and asset utilization.
Definition of "Sale and Leaseback Transaction" for long-term lease
This definition ties "Sale and Leaseback Transaction" to long-term leasing.
"Sale and Leaseback Transaction" refers to a long-term arrangement where an asset is sold and then leased back for a predetermined period, providing the seller with capital while continuing to use the asset.
Definition of "Sale and Leaseback Transaction" for short-term lease
This definition connects "Sale and Leaseback Transaction" to short-term leasing arrangements.
"Sale and Leaseback Transaction" means the sale of an asset with the immediate leasing back of the asset under a short-term lease agreement, allowing the seller to free up capital while still maintaining use of the asset.
Definition of "Sale and Leaseback Transaction" for industrial assets
This definition links "Sale and Leaseback Transaction" to industrial operations.
"Sale and Leaseback Transaction" refers to a transaction where industrial assets, such as machinery or factories, are sold to a buyer and then leased back, ensuring the seller continues to use the assets for production while generating capital.
Definition of "Sale and Leaseback Transaction" in the context of inventory
This definition ties "Sale and Leaseback Transaction" to inventory management.
"Sale and Leaseback Transaction" means a transaction where a company sells its inventory to another party and then leases it back, allowing continued use of the inventory while improving liquidity.
Definition of "Sale and Leaseback Transaction" for regulatory compliance
This definition connects "Sale and Leaseback Transaction" to regulatory matters.
"Sale and Leaseback Transaction" refers to the sale of an asset followed by a leaseback agreement, structured in compliance with regulatory requirements to ensure the seller's continued use of the asset while meeting legal obligations.
Definition of "Sale and Leaseback Transaction" for securitization
This definition links "Sale and Leaseback Transaction" to securitization strategies.
"Sale and Leaseback Transaction" means a transaction involving the sale of an asset, which is then leased back, and the asset may be used as collateral in a securitization deal to raise capital.
Definition of "Sale and Leaseback Transaction" for small businesses
This definition ties "Sale and Leaseback Transaction" to small business financing.
"Sale and Leaseback Transaction" refers to a transaction where a small business sells an asset to generate cash and enters into a lease agreement to retain the use of the asset for continued operations.
Definition of "Sale and Leaseback Transaction" for large real estate holdings
This definition connects "Sale and Leaseback Transaction" to real estate transactions.
"Sale and Leaseback Transaction" means a real estate deal in which a property is sold and leased back, often used by companies with large real estate holdings to free up capital while maintaining operational space.
Definition of "Sale and Leaseback Transaction" for financial institutions
This definition links "Sale and Leaseback Transaction" to banks and financial institutions.
"Sale and Leaseback Transaction" refers to the sale of an asset by a financial institution, followed by a leaseback arrangement, allowing the institution to liquidate the asset while continuing its operations.
Definition of "Sale and Leaseback Transaction" for mergers and acquisitions
This definition ties "Sale and Leaseback Transaction" to M&A activities.
"Sale and Leaseback Transaction" means a financial transaction occurring as part of a merger or acquisition, where assets are sold and leased back, providing liquidity to the company being acquired or merged.
Definition of "Sale and Leaseback Transaction" for private equity
This definition connects "Sale and Leaseback Transaction" to private equity investments.
"Sale and Leaseback Transaction" refers to the sale of company assets followed by the leasing of these assets back to the seller, often used by private equity firms to unlock capital while retaining asset control.
Definition of "Sale and Leaseback Transaction" for tax-efficient financing
This definition links "Sale and Leaseback Transaction" to financing strategies.
"Sale and Leaseback Transaction" means a transaction used for tax-efficient financing, where the seller gains immediate liquidity from the sale of the asset while benefiting from tax deductions related to lease payments.
Definition of "Sale and Leaseback Transaction" for funding expansions
This definition ties "Sale and Leaseback Transaction" to business expansion.
"Sale and Leaseback Transaction" refers to the sale of business assets followed by leasing them back, generating capital for funding expansion efforts while continuing to use the assets in operations.
Definition of "Sale and Leaseback Transaction" for leasehold improvements
This definition connects "Sale and Leaseback Transaction" to leasehold agreements.
"Sale and Leaseback Transaction" means a transaction where a company sells its leased property and then leases it back, often including leasehold improvements, to maintain use of the property for its business needs.
Definition of "Sale and Leaseback Transaction" for asset monetization
This definition links "Sale and Leaseback Transaction" to asset monetization.
"Sale and Leaseback Transaction" refers to the sale of an asset to a buyer, followed by a lease agreement that allows the seller to continue using the asset, turning the asset into liquid capital while retaining operational benefits.
Definition of "Sale and Leaseback Transaction" for income-producing assets
This definition ties "Sale and Leaseback Transaction" to income-generating properties.
"Sale and Leaseback Transaction" means the sale of an income-producing asset, such as real estate or equipment, followed by leasing it back, allowing the seller to maintain income while accessing capital from the sale.
Definition of "Sale and Leaseback Transaction" for accounting purposes
This definition connects "Sale and Leaseback Transaction" to accounting.
"Sale and Leaseback Transaction" refers to a transaction where the seller transfers ownership of an asset and simultaneously leases it back, requiring specific accounting treatment to reflect both the sale and the lease liability.
Definition of "Sale and Leaseback Transaction" in cross-border transactions
This definition links "Sale and Leaseback Transaction" to international deals.
"Sale and Leaseback Transaction" means the sale and leaseback of assets in cross-border transactions, where the seller gains liquidity and the buyer assumes ownership while the seller continues to use the assets under a lease agreement.
Definition of "Sale and Leaseback Transaction" for risk management
This definition ties "Sale and Leaseback Transaction" to risk strategies.
"Sale and Leaseback Transaction" refers to a financial arrangement where a company sells an asset to reduce risk exposure while maintaining operational use of the asset through a leaseback agreement.
Definition of "Sale and Leaseback Transaction" for investment purposes
This definition connects "Sale and Leaseback Transaction" to investment strategies.
"Sale and Leaseback Transaction" means the sale of an asset with the simultaneous leaseback arrangement, providing the seller with liquidity and the buyer with an investment opportunity in the leased asset.
Definition of "Sale and Leaseback Transaction" in distressed situations
This definition links "Sale and Leaseback Transaction" to distressed asset sales.
"Sale and Leaseback Transaction" refers to the sale of assets by a company in financial distress, followed by leasing the assets back, to provide short-term liquidity while retaining the use of the assets.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.