World Renowned Pediatric Hospital
Situation:
World renowned pediatric hospital had a need to acquire $50-75 million in healthcare equipment for its expansion project over a 30-month period. Consistent with its financial model, and in an effort to preserve cash, they elected to use lease financing as a primary means to acquire the equipment.
Client had a need to:
§ Determine the optimal lease structures based upon equipment type and future plans within the context of their current financial model.
§ Identify, negotiate the best pricing, terms, conditions, and lease structures from an endless pool of diverse leasing companies.
§ Ensure ongoing compliance with provisions in multiple lease contracts, eliminate unnecessary and unbudgeted expenses or technical defaults.
Optimus:
We are an independent financial advisory firm with its sole focus in equipment finance and leasing. Similar to an investment banker or an attorney, Optimus is hired to negotiate new and renegotiate existing equipment finance and lease contracts. From an independence standpoint, Optimus provides a niche expertise, free of any conflict of interest. (This is not the case with lease brokers or leasing company relationship managers which have an inherent conflict.)
Optimus has a successful 30+ year history, experienced in multiple industries including healthcare and has offered to put PCH in contact with references in the form of senior financial executives from some of its current clients including multi-billion dollar private and publicly held corporations.
Key Services:
§ Expertise. Subject matter expertise, at a detailed level in lease contracts that, as an organization, clients may not currently possess.
§ Scale. Each year Optimus, on behalf of its clients, awards several hundred million dollars in equipment finance and leasing business to leasing companies and as a result, can, in most instances, leverage its knowledge and historical awards to benefit its clients.
§ Expertise in negotiating pricing. Optimus will negotiate pricing of contracts such that the client’s overall savings (compared to internally negotiated contracts) exceed Optimus’ fee. In other words, it’s typical that Optimus clients are able to recoup fees within the first few months of the lease term.
§ Speed to market. Optimus is set up to efficiently manage the process of vetting equipment finance and lease providers and employing best practices when establishing a lease finance program. Client production timelines could be negatively impacted by unforeseen problems or delays related to an internally developed lease finance program. Optimus managing the program reduces this risk.
Summary:
Optimus provides a needed outsourced service that significantly benefit clients. Optimus’ familiarity with the leasing marketplace can assist clients in quickly putting a best-practices leasing program in place to meet a client’s financing timeline while at the same time reducing execution risks.