Definition for : Dividend recapitalisation

A dividend Recapitalisation is a transaction in which the existing Shareholders of a company alter its Financial structure by paying out a dividend that is financed by Debt. Such transactions are frequently done by companies owned by Private equity firms when the LBO is successfull and as an alternative to an IPO or a secondary LBO or a Trade sale.

(See Chapter 45 Taking control of a company of the Vernimmen)

To know more about it, look at what we have already written on this subject