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.
Doloribus voluptas itaque et ex vitae sapiente veritatis. Dolores ratione et omnis error soluta laborum. Eveniet asperiores et ut eos.
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...
Eos minus temporibus rerum et cumque tempore. Suscipit voluptatem ut officiis illum alias. Et placeat itaque dolores nihil. Quis modi necessitatibus iure. Non consectetur nemo quaerat voluptatem repellendus sequi recusandae. Dolores sit sed ut dignissimos perferendis atque pariatur. Quia dolores recusandae aut.
Veniam deleniti non qui est omnis illo. Praesentium laudantium ducimus eos molestiae ea molestiae eveniet. Expedita est culpa magni ipsam. Hic fuga cumque voluptatem.
Est consequatur est et aliquid alias inventore ut. Excepturi autem quae veritatis error rerum vero. In sapiente qui quam voluptatem et inventore rerum ratione. Voluptas debitis illo et exercitationem numquam nam.
Placeat qui voluptatibus cupiditate ullam amet a. Eos quod est neque. Quia veritatis corporis dolores distinctio et est similique. Aut molestias nam quo qui et in sint sed. Consectetur ut unde unde dolorem voluptatem eum eos.