In an M&A transaction that includes a meaningful real estate component, the underlying real estate is often undervalued. This is typically because the property is valued based on an appraisal or price-per-square-foot methodology rather than its potential value in the sale-leaseback capital markets. For example, if you are acquiring a business at a 4x EBITDA multiple, a portion of that EBITDA may effectively be converted into rent and monetized through a sale-leaseback at a significantly higher multiple, often in the 10x to 12x+ range, depending on the credit, real estate, lease structure, and other transaction-specific factors. This valuation differential can create a meaningful arbitrage opportunity, unlocking capital that would otherwise remain tied up in corporate real estate. The sale-leaseback proceeds can then be incorporated into the acquisition capital stack, potentially reducing the equity and/or traditional acquisition financing required to close the transaction. If you are evaluating an M&A opportunity with a real estate component, please feel free to reach out. I’m happy to take a quick look and provide initial feedback on whether the transaction could be a strong candidate for a sale-leaseback. Joel Cukier redacted redacted #SaleLeasebacks #MergersAndAcquisitions #AcquisitionFinancing #RealEstate #CapitalMarkets