Dividend Recapitalization (“Dividend Recap”) defined: A dividend recapitalization (or “dividend recap”) typically involves the company’s borrowing money in order to make a large cash distribution to its shareholders. After the dividend re-cap, the company’s capital structure has changed significantly (for example, it may have had no debt prior and now is debt-laden). Investors benefit by receiving a large cash distribution from the company and “taking money off the table.”
Above is a definition for “Dividend Recapitalization (“Dividend Recap”)” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
Augment your research. Uncover opportunities. Close deals.