Transaction Services - Capital Aviation Group

THE CAG SOLUTION

CAG’s purchase of the real estate aspect of aviation business can help business accomplish a variety of goals by providing capital for M&A activity, business expansion, and owner liquidity.

The flexibility of the CAG solution, relative to other financing options, is outlined below.

	Capital Aviation Group Solution	Traditional Mortgage Financing	Sale of Operations Only
Business Partner for Future Growth	Yes	No	No
Increases Return on Equity	Yes	Yes	No
Enhances Future Sale of Operations	Yes	No	No
Personal Guarantees	No	Yes	Yes
Diversifies Investments	Yes	No	Yes
Maintain Site Control	Yes	Yes	Yes
Reduced Interest Rate Risk	Yes	No	No
Long-Term Predictability	Yes	No	No
Monetizes Real Estate Equity	Yes	Partial	No

SALE LEASEBACK TRANSACTION

In a sale-leaseback transaction, operators sell their real estate to CAG and then lease the property back from CAG for the duration of the underlying ground lease. This structure allows operators to tap into 100% of the equity in their real estate while maintaining control and use of their property.
Operators can use the proceeds from the sale of the real leasehold improvements for acquisitions, operations expansion, and to fund new lines of business. Sale-leaseback proceeds can also provide liquidity to business owners for estate planning or investment diversification. If liquidity is not an immediate concert, the seller may defer capital gains taxes in the U.S. and Canada by accepting units in the CARS Operating Partnership in lieu of cash proceeds.

MERGERS AND ACQUISITION SUPPORT

CAG can play an integral role during the due diligence phase of a pending merger or acquisition. By partnering with CAG, the operator can rely on CAG’s underwriting of the real estate portion of a M&A transaction, allowing full focus on underwriting the operating business.
By partnering with CAG, operators can significantly lower their capital investment in an acquisition, thereby increasing the return profile and expanding the universe of possible acquisition targets.
Should an operator decide to sell the business, the seller can maximize sale proceeds by bifurcating the sale of their operations and real estate, thereby reducing the cost of entry and expanding the pool of potential buyers.

IMPROVEMENT AND CONSTRUCTION FUNDING

CAG provides capital for additional investments to a property during or after the initial investment. CAG’s flexibility allows operators to remodel or expand facilities whenever necessary, while preserving operators’ capital and credit for other needs. Similar to a construction loan, CAG can fund costs as incurred or simply fund the entire cost of a project upon its completion.

THE CAG SOLUTION

SALE LEASEBACK TRANSACTION

MERGERS AND ACQUISITION SUPPORT

IMPROVEMENT AND CONSTRUCTION FUNDING

CAPITAL AVIATION GROUP

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