Sale-Manageback

Sale-Manageback

A transaction in which a company is sold but the previous owners remain in place as managers. For example, Joe may sell his company to Bob but remain as the chief executive officer. The seller may receive a share of the company's profits, but no longer has any liability for losses.
References in periodicals archive ?
Recent years, though, have seen the development of a comparable alternative, in fact one with certain advantages over the sale-leaseback, called the sale-manageback arrangement.
Mullen: Sale-manageback developed partly as a result of REITs, which are forced to do a sale leaseback because of REIT requirements, pulling out of the market, and partly because public longterm care companies saw sale-manageback as a way of improving their stock values by getting their real estate properties off their books.
For one, with sale-manageback, you don't have to relinquish all ownership in your operating entity.
Peck: It sounds as though sale-manageback might not be for everyone.
During the quarter, the Company acquired a leasehold interest in two of the Retirement Centers that it previously managed, and entered into a long-term management contract pursuant to a sale-manageback of a Retirement Center that it previously owned.
During September 1999, Regent sold to its Chairman and Chief Executive Officer its 108-bed Scottsdale, Arizona community under a sale-manageback arrangement.