Question:

What is a dividend recap?

Answer hidden.

Answer:

A dividend recap is a special dividend that a PE firm pays itself. It occurs when the PE firm's portfolio company takes on new debt for the specific purpose of paying a special dividend to the PE firm that owns it.

Other

LBO

Why would a PE firm perform a dividend recap of one of their portfolio companies?

LBO

How could a PE firm boost its return in an LBO?

LBO

What is the circular reference in an LBO?

LBO

Why do private equity firms use leverage when buying a company?

LBO

Question:

What is a dividend recap?

Answer:

Other

LBO

What is the "tax shield" in an LBO?

What variables impact an LBO the most?

What are some characteristics that make a good LBO candidate?

Walk me through an LBO

Why would a PE firm perform a dividend recap of one of their portfolio companies?

How could a PE firm boost its return in an LBO?

What is the circular reference in an LBO?

Why do private equity firms use leverage when buying a company?

What are the different levers in an LBO?

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