A third possibility is the stock market tanking and inflation rate spiking. Many top companies are either freezing hiring or downsizing. However, it does look

A third possibility is the stock market tanking and inflation rate spiking. Many top companies are either freezing hiring or downsizing. However, it does look better on the balance sheet when you get rid of two of your major cash burning expenses and their future vesting schedules. CAP rate = net operating income / value of the asset Basically you can immediately increase the value of your company by lowering expenses without having to justify a lower CAP.