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Middle Market Strategies

  • January 27, 2023
  • Posted by: Waldon Fenster
  • Categories: Buying, Equipment, Manufacturing, Real Estate, Trend
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Deal Exchange - Sales Leasebacks - Middle Market Strategies

Middle Market Strategies During a Recession

We are currently in the midst of an economic recession, which has had a major impact on businesses around the world. In these difficult times, it is more important than ever for businesses to take proactive steps to ensure their long-term success and stability. One potential strategy for lower to middle market businesses is sales lease backs on real estate and investing in new innovative programs such as Equipment as a Service (EaaS).

Sales Leasebacks

Sales leasebacks allow businesses to sell their existing real estate assets and then lease them back from the buyer. This provides the business with immediate capital, which can be used to cover operating costs or pay down debt. Additionally, EaaS gives businesses the opportunity to upgrade or add equipment without having to take on long-term debt or purchase the equipment outright.

A sales leaseback is a financial transaction in which a company sells its existing real estate assets and then leases them back from the buyer. This provides the business with immediate capital, which can be used to cover operating costs or pay down debt. Additionally, the leased asset provides ongoing income for the person who had purchased it, making it an attractive investment for them. Sales leasebacks provide lower to middle market businesses with a way to leverage their current assets and liquidity constraints during times of economic difficulty. They also provide greater flexibility for financing equipment upgrades without having to take on long-term debt or purchase the equipment outright.

By utilizing sales leasebacks and EaaS programs as well as staying up-to-date on current trends that may have an impact on their operations, lower to middle market companies can help ensure their financial security going forward. Private equity firms look for well-run companies with sustainable cash flows when considering potential investments; proactively taking steps now can help optimize valuations when those companies are ready for sale.

Equipment as a Service EaaS

Equipment as a Service (EaaS) is an innovative program that gives businesses the opportunity to access equipment without needing to purchase it outright or take on long-term debt. Instead, they can lease the equipment and pay for it in installments over time. This enables them to access the technology they need while avoiding large upfront costs, helping to ensure their financial security and stability.

In addition to these strategies, lower to middle market businesses can also benefit from staying up-to-date on other current trends that may have an impact on their business operations. For example, digital transformation initiatives are becoming increasingly important in today’s global economy. Companies that invest in new technology and processes are better positioned to take advantage of opportunities generated by digital disruption.

The exact amount that a business can expect to see its evaluation increase by integrating Equipment as a Service (EaaS) and Sales Leaseback is difficult to estimate without knowing the specific details of the business in question. However, it is likely that businesses would see tangible benefits from both of these services, such as access to new technology, improved liquidity and cash flow management, reduced overhead costs, and increased security. Additionally, depending on how long the lease term is for each service and how much the individual payments are, businesses may also be able to achieve savings over time.

In Conclusion!

Finally, it is important for lower to middle market businesses to stay informed of emerging trends in private equity investing as well. Private equity firms commonly look for well-run manufacturing companies with sustainable cash flows when considering potential investments; this makes it all the more important for manufacturers planning an eventual exit via private equity sale that they optimize valuations by taking proactive measures during difficult economic times like this one. By taking advantage of sales leasebacks and EaaS programs, remaining knowledgeable about industry trends, and optimizing valuations now, lower and middle market business owners can help ensure their financial security going forward.


Author: Waldon Fenster
Waldon Fenster is an experienced chief executive officer with a demonstrated history of working with startups to create multi-million dollar companies. At his core Waldon is a startup expert and corporate acquisition consultant with an expertise in facilitating brand growth for businesses that want to present their company to the marketplace. Waldon has worked with thousands of companies and Fortune 100 brands to expand their business models and amplify their portfolios for immediate financial benefit. He has deep knowledge and experience in capital, strategy, sales, procurement, systems development, and start-up ventures. Currently Waldon focuses on top level work, where he can build small businesses and emerging startups from the ground up, to make them attractive to outside investments and acquisitions on a global scale. Waldon holds Bachelor Degrees in Business Management & Marketing from the University of Wyoming along with Associate degrees in Service Management, Decision Science and Finance.

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