Operating To Capital Lease Conversion
March 9, 2023
- Client desired to convert operating leases to capital leases for EBITDA enhancement.
- Optimus negotiated early end of term notice of 14 leases (50+ assets / original cost of ~$3.1M / $58k in monthly payments).
- No cash outlay was required to realize immediate value!
- EBITDA increased in excess of $578k!
- Optimus created Irrevocable End of Term Purchase Notice Letters approved by Client’s auditor resulting in an increase in new enterprise value.
- 11x EBITDA multiple!
- $6.4M in total enterprise value!
- ROI of 5.1x