This preview shows page 1. Sign up to view the full content.
Unformatted text preview: understand when and why it may
make better sense to lease assets than to purchase them. You
need to understand how convertible securities and stock purchase warrants work in order to decide when using such Operations: You need to understand leasing, and what maintenance obligations the firm will have for a leased asset, because
the firm may choose to obtain operating equipment by this
means. 672 SEBAGO BREWING
“I’LL HAVE A LEASE, PLEASE”
hen restaurateurs Kai Adams, Brad
Monarch, and Timothy Haines
opened their Sebago Brewing Company
restaurant and brewery in South Portland,
Maine, they chose to lease several big-ticket items. After leasing a $30,000 point-of-sale computer
system and a $4,000 dishwasher for their first restaurant, they continued to lease equipment as
they expanded to other locations.
“Now is a good time to be doing that,” Adams says. “We don’t have to buy all this equipment, so it frees up some cash for us.” In addition to preserving cash, Adams and his partners like
being able to leave maintenance to the lessor that owns the equipment.
View Full Document
This document was uploaded on 01/19/2014.
- Fall '13