Sale and Lease Back or Sale-leaseback
A sale-leaseback is a transaction in which a company sells an asset and then leases it back so that it can use the asset while no longer owning it. It is a method whereby a company can remove a large, fixed asset from its balance sheet along with the depreciation expense that will affect its income and expense statement. A saleleaseback also allows a company to raise cash that can be used for operations. Many businesses enter into sale-leaseback transactions prior to offering the company for sale.
Off-balance Sheet Assets and Liabilities