Logistics Company Navigates Complex Sale-Leaseback with CoreTech Leasing

Challenge:
A private equity-sponsored logistics company needed to finance $8.1MM worth of racking and material handling equipment to enhance precision, streamline production, and optimize their business. However, the complexity of a sale-leaseback transaction and challenging tax implications made securing financing a daunting task. Additionally, the recent acquisition by a private equity firm posed a significant hurdle, as companies undergoing restructuring often struggle to obtain lease approvals due to increased debt loads.

Solution:
CoreTech Leasing provided a tailored leasing solution that addressed the unique complexities of the deal. By working closely with the company’s finance and operations teams, CoreTech expedited the reimbursement process for both the company and its vendors, ensuring timely execution. Additionally, CoreTech performed a side-by-side lease analysis against a competitor’s offering and discovered that the competitor’s contract contained pitfalls that could have resulted in significantly higher costs.

"One of the most rewarding aspects of this deal was helping the client fully understand the financial implications of their options. By conducting a deep analysis, we were able to shed light on potential hidden fees and contract pitfalls. Our role is always to provide clarity and empower clients to make the best financial decisions for their business."
— Brian Wood, VP of Impact and Growth

Despite the recent private equity acquisition, CoreTech successfully secured approval and funding within one year—an accomplishment that is particularly difficult in the post-acquisition landscape.

Outcome & Value Added:

• Successfully navigated a complex sale-leaseback structure while addressing tax challenges.

• Identified costly contract pitfalls, providing the client with critical financial insights.

• Secured lease approval despite the difficulties associated with private equity acquisitions.

• Expedited the funding process to ensure capital preservation and smooth vendor transactions.