Two Foundation Studies Underway: Business Differentiation and A Look at Securitization
Posted 06/02/06
Two new Foundation studies are in production and expected to be delivered later this year. The first study is on business differentiation and why a few leasing companies consistently outperform their peers. It is expected to be delivered this fall. The second study, to be delivered in December 2006, will focus on securitization and will help you determine if securitization is right for you.
Accenture, LLP has been commission by the Foundation to prepare a research paper with a working title of “Business Differentiation: What makes a select few leasing companies consistently outperform their peers?” Accenture hypothesizes that business differentiation may increase market share or market segments, or both, and that it also may enhance other performance metrics. Through its research, Accenture found three characteristics of high performance businesses. First, they believe that the drivers of value will vary significantly from industry to industry, so they have identified industry-specific characteristics and will identify such specifically for the leasing industry. Second, Accenture states that the distinctive capabilities across key business functions are critical levers to sustainable value creation. For example, included in these are increasing market share and expanding market segments. Third, Accenture believes there are certain characteristics that apply across multiple industries and business functions. Therefore they will use existing high performance business research (not involving leasing) as a foundation starting point, and augment that with the research study focused solely on the leasing industry. The research project is meant to bring new information and thinking processes to the leasing industry which are “game-changing” and “transformational.” Also, the paper will be applicable to all leasing businesses: independent, bank-owned, captive, large and small.
The second research project addresses securitization, Is Securitizing Equipment Leases Right for You? This paper will address how a firm can decide whether or not to get involved in securitization of its equipment leases. Specifically, the research seeks answers to the several questions, including, but not limited to: • Who are the companies that are the most active in using securitized equipment leases and what can we learn from their experience? • Are there common attributes of these firms that are suggestive as to what types of firms that would find equipment lease securitization attractive? • Is equipment lease securitization a viable financing alternative for small to medium size firms? • How do firms that engage in the securitization of their equipment leases analyze the decision to do so? • What are the pros and cons of this financing strategy? • What is the future of equipment lease securitization? • What are the obstacles to continued growth in equipment lease securitization? • What are the implications of impending federal disclosure requirements contained in SEC Regulation AB that took effect January 1, 2006?
Both papers may be found later this year on the Foundation store online at www.LeaseFoundation.org As always, donors receive research products from the Foundation automatically and at no cost. Non donors may purchase the studies.
Sites of Reference:
http://www.store.leasefoundation.org/
CONTACT:
Lisa A. Levine, CAE
Equipment Leasing and Finance Foundation
Phone Number: 703-527-8655
Fax Number: 703-465-7488
E-mail: llevine@elamail.com
