“A dividend recap need not derail an exit if earnings growth has created genuine borrowing capacity, but borrowing against hoped-for growth is a different proposition. More debt means less financial flexibility and, at the same enterprise value, less equity value left for shareholders when the business is eventually sold.”

Sunaina Sinha Haldea · said date not stated · reported 2026-10-16

Haldea says a dividend recap need not derail an exit if earnings growth creates genuine borrowing capacity, but borrowing against hoped-for growth reduces financial flexibility and equity value.