Dictionary definition of “sale-manageback”

sale-manageback

n. a financial arrangement in which a property is sold, then managed by its former owner for a cut of profits. Also attrib. Subjects: English, Business, Money & Finance, Jargon

Editorial Note: This is similar to a sale-leaseback.

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Citations: 1994 Lloyd’s List (U.K.) (Apr. 29) “One ship line” p. 5: Vard, Kloster’s parent, is planning a wholesale sell-off of assets to tackle its mountain of debt. What is more saignificant [sic] is that Kloster will keep operational management of the ship for a two-year period, which may well be extended if things go well. A sort of “sale and manage back’ arrangement into which some industry majors might be tempted for their older tonnage. 1999 Business Wire (Nov. 15) “Regent Assisted Living, Inc. Announces 1999 Third Quarter Financial” (in Portland, Ore.): During September 1999, Regent sold to its Chairman and Chief Executive Officer its 108-bed Scottsdale, Arizona community under a sale-manageback arrangement. As a result of the sale, Regent generated approximately $1.2 million of cash available for general working capital requirements.…Regent continues to manage the community pursuant to a long-term agreement. 2003 Terry Pristin New York Times (July 30) “Big Assisted-Living Company Shifts Away From Property Ownership” p. 5: Sunrise sold 12 of its wholly owned properties and 11 joint venture properties for a total of $311 million…. Under a so-called sale-manageback arrangement, Sunrise has a long-term operating contract as well as a 10 percent interest in the properties. 2005 Martin Flanagan Scotsman (Glasgow, Scotland) (Mar. 15) “Finance directors calculate odds on further change”: The group has decided that the inelegant neologism “sale and manageback” will create less value for shareholders than the more straightforward “get-shot-of-and-no-mistake.”

Posted 16 Mar 05 | Permalink | Tell a Friend