Your CapEx finance strategy
will impact enterprise
value for years.

How can it be improved?

Value creation opportunities...

at any point in the investment cycle.

Buy side diligence

Recommend best alternative: Seller payoff? Buyer assumption? Buyer assumption and payoff?
Assess financial risk of assuming equipment leases and actions required to mitigate unplanned costs
Propose strategy for integrating Seller CapEx requirements into the Buyer's CapEx finance program to create immediate cost benefits and additional leverage to the enterprise

Post investment / First 100 days

Execute on what was learned in diligence / cost take out, early terminations, or other potential interventions
Model and execute on strategies for converting "EBITDA to Cash" to free up cash for debt repayment

Hold period (add-on acquisitions, divestitures, any time-sensitive challenges)

Ensure all future add-on acquisitions, divestitures-any M+A–are reviewed for equipment financing implications
Review facility openings or closings that could create opportunities and/or risks
Build out and manage a best-in-class ongoing equipment finance program

Sell side diligence

Convert operating leases to capital leases to increase EBITDA, create efficiencies during exit process
Prep lease contracts for exit (i.e., rights to keep, return, or renew line items)

Optimus is not a leasing company, but we exist to remove the aggravating and time-consuming work associated with inherited leases from the desks of your treasury, procurement, contracts, tax, and legal departments. For over 25 years we have successfully saved multibillion dollar companies millions of dollars on their equipment leasing spend.

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M+A value creation is:

Complex, Time Consuming, & Costly

Complex

Your company will eventually encounter a number of the following obstacles:

Leases in Extension

Reconciling payment history

Early payoffs

Unpaid property tax

sales/use tax
past due payments
Transfer & assumption fees

Residual value disputes

onerous return & purchase options

change in control clauses
cross default clauses

overexposure requiring payoff

lost, stolen, or destroyed assets

late fees
obtaining credit approval

insurance requirements

asset inspection

and more

Time Consuming

There are as many as 15 different steps required to transition one leased asset, not to mention dozens of emails and phone calls with leasing companies and other involved parties. Leasing companies' response may add 30 to 90 days to assignment completion, resulting in bad will between the buyer, seller, and lessors. Hand equipment leasing off to Optimus' specialists.

Costly

Our clients have faced unplanned lease expenses of hundreds of thousands, sometimes millions of dollars, simply by overlooking a single clause in one of their contracts. Others have faced the prospect of having cross default clauses enforced, resulting in mass acceleration of all future lease payments.

CLAUSES THAT WILL COST YOU

Equipment lease contracts traditionally cost companies 5–20% more than original diligence discovery exposed.

COUNT
THE
COSTS

per $1M under lease

Do you have the bandwidth & experience to find and deal with these clauses in your contracts?

The Optimus Process

Learn more

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