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Onsite Seminar

Purchasing and Supply Management

Lease Versus Buy Applications

  1. Introduction
    1. Definitions
      • Leasing
      • Purchasing
    2. Why the Focus and Attention of This Review
    3. Benefits from Lease vs. Buy Analysis

  2. Evaluation Criteria
    1. What Criteria to Review
    2. Who Should Be Involved in a Lease/Buy Decision
    3. Impact of Decisions on Other Areas
    4. Timing of Impacts to the Organization

  3. Lease Review
    1. Building a Framework for Leasing
    2. Benefits of Leases
    3. Types of Leases
    4. Range of Lease Arrangements
    5. Tax Considerations
    6. Developing a Basic Model for Lease versus Buy
    7. Utilizing the Net-Present Value Model
    8. Identifying the Internal-Rate-of-Return
    9. Residual Value of Assets
    10. Rationale of Asset Life

  4. Purchasing Review
    1. When to Buy versus Lease
    2. Benefits of Purchasing
    3. Types of Items Best to Purchase
    4. Purchase Methods that Could Result in Best Value
    5. Depreciations Impact upon Asset Acquisitions
    6. Cash-Flow Impacts on Buying
    7. Miscellaneous Charges from Purchasing
    8. What Constitutes Good Deal
    9. Exit Strategies

  5. Comparison and Contract: Lease versus Purchase
    1. Developing the Evaluation Matrix
    2. How to Sell Your Decision to Management
    3. How to Minimize Risk

  6. Financial Sheet Comparisons of Lease versus Purchase
    1. ABC Company, Inc.—(Lease)
    2. ABC Company, Inc.—(Purchase)
    3. Financial Assessment—Identify Alternatives
    4. Understanding Liquidations and Divestitures

  7. Conclusion