Improving Your Cash Flow & Balance Sheet
Case Study March 2007: Leaseback With Applebee's Franchisee
Michael Henley
President
|
WHAT & WHEN: The sale-leaseback trend continues to grow as companies realize it to be a favorable financial tool, one that is going to continue.
WHO: Capitalizing on the benefits of sale-leaseback financing, one of our underwriters has entered into a multi-unit sale-leaseback agreement with one of the original Applebee's franchisees. AppleGrove Restaurants received $87 million from the lender, continuing a long-standing, successful relationship.
WHY: "Atlanta-based AppleGrove is using this sale-leaseback to help redefine their balance sheet and position themselves for growth opportunities. The timing of this deal works well with management's long-term strategies." The funding allows AppleGrove to reduce its debt and gain capacity for future growth. The sale-leaseback covers 33 locations in Georgia, Alabama, Colorado, New Mexico, Oregon, Washington, and Idaho.
"This is the proverbial win-win situation for both parties," says the lender’s vice president, "it contributes to our growth in a strong franchise system with great assets. Furthermore, it underscores the value of the relationships we have with our customers, and AppleGrove is one of the preeminent Applebee's franchisees in the country."
”The lender recognized the market is ripe for sale-leasebacks and created a package that met our needs," says Mike Rummel, CFO, AppleGrove. "Thanks to their help, we now have an increased capability to grow, due to improved cash flow."
With almost three decades of experience, Michael Henley of the Money Source, Inc., serves clients across the United States, offering a wide variety of financing solutions, including funding for: Refinancing, reimaging, acquisitions, and new construction. The lender specializes in financing for the small to medium sized businesses who utilize equipment assets. Mr. Henley can be contacted at 1-888-844-1405.
