Dividend Recap Structuring
Working on a dividend recapilatisation where owners want to take money out of the business and have run into a technical issue - help would be appreciated.
Company is taking out a large loan (c. 4x EBITDA) to fund a payout to shareholders. Cash flow projections are all strong and comfortable able to support the leverage. Only issue is that the firm does not have even close to enough retained earnings to fund the transaction and the owners need the money now, so no chance of waiting till the next accounting period and then distributing the cash. Equityholders are also in a lock-up is the normal PE style SPV structure doesn’t work.
I’m supposed to come up with a few options for more exotic deal structures, so any ideas would be awesome
Multiple Expansion Dot com - they have full example model
Ad qui quia dolores hic iste consequatur adipisci. Maiores vel dolor aut. Sapiente fuga ut adipisci laudantium quia voluptas explicabo nisi. Quae magni dolorum et deleniti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...