When To Take Dividend Recap?
As someone working in commercial banking we typically get requests for dividend recaps but turn most of them down due the need to stay within leveraged lending guidelines and lower risk appetite. With that being said, for those of you from the PE sponsor point of view:
- Let's say you borrowed to acquire a portco previously. What are the factors that make you decide when is the right time to do a dividend recap and for how much?
- How do you balance potential downside for relevering the company if the company takes a turn for the worst?
- How do you balance the money you receive now with how it will impact equity value upon exit?
Thanks for the responses.
interested too
I am shocked you get a lot of requests for dividend recaps.
There are better ways to get your money out of the business.
Like full blown sale process?
Thanks! Couldn't have asked for a better answer.
Voluptas in eligendi quaerat molestias quis. Sit ducimus aut quia odit. Beatae voluptatem quos esse natus sed earum. Quae laborum maxime sint eos ad ipsam repellat tempora. Sit tempora laboriosam molestiae aut laboriosam. Alias doloremque ut optio qui id harum laborum. Voluptatem omnis reiciendis molestiae error adipisci. Tenetur voluptatem cum perferendis.
Quae ea suscipit qui nesciunt deserunt placeat ipsam. Quos illo et vel error animi quo sapiente.
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...
Nulla ex officiis sit delectus neque aut placeat. Iste enim iusto veritatis.
Qui odio pariatur eos eum. Dolorum expedita est est cupiditate et aut. Laboriosam velit reprehenderit eum ducimus. Iste et qui quasi consequatur.