When preparing for a period of credit contraction, in many cases, we counsel our clients to execute a pre-exit dividend recapitalization prior to a sell-side market launch. We believe that such a recapitalization event:
• de-risks the investment for selling shareholders
• minimizes required rollover
• eliminates deal financing risk
• assures access to aggressive debt and underpins valuations
• serves as a dry-run for existing Management to hone their presentation skills for the higher-stakes sell-side environment
We invite you to download our Middle Market Leveraged Finance Report on Pre-Exit Dividend Recapitalizations and how you can squeeze additional equity proceeds out of your next portfolio-company sale process.