Lund Financial Corporation

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Coherent Inc.

A $360 million per year laser manufacturing company, Coherent, Inc. historically owned its facilities, either paying cash or quickly amortizing any loan. When Coherent needed a new building to house its Medical Division, it expected to again purchase the space it needed. This tradition, however, conflicted with other corporate goals: Coherent also sought to position itself to be able to acquire complimentary companies and new technologies. Lund Financial recognized that synthetic lease financing would address both issues: Coherent conserved its cash and minimized payments, but nonetheless attained complete control over the new facilities. The flexibility gained through this structure will provide far greater value to Coherent's shareholders than simply owning another building would have. "We could not have done this transaction without the sound advice and active leadership of Lund Financial. They managed the entire process for us." -- Dennis Bucek, Treasurer