Why would an organization choose to sell an asset and then lease it back?

In: Business and Finance

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They would sell the asset to provide them with capital.Once the asset is sold they dont have any of the overheads associated with the asset so less costs and also they will increase there capital budget. It is then common to lease the asset back as this retains the asset's usage.

Common example is pubs, brewery's in recent years have sold assets such as a pub to creat capital that can be invested elsewhere and then they lease the pub back without any of the overhead costs.its basically a paper excercise to make organisations look more attractive.

First answer by ID1345022898. Last edit by ID1345022898. Question popularity: 46 [recommend question]

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Sell and lease back? Operating lease an asset? What made you choose this organization? How can you be an asset to organization? Choose one quality error of company organization? Why do you think you can be an asset for this organization? Why would an organization choose to lease and asset instead of buying it? Why would and organization choose to sell ans asset and then lease it back?