> Most people who run a company will not behave like this. The idea is not to have a company that is constantly on the brink, but to pay out some dividends when

> Most people who run a company will not behave like this. The idea is not to have a company that is constantly on the brink, but to pay out some dividends when it's safe to do so. Dividend recaps (as they're called in PE jargon) are frequently being used by entrepreneurs and/or owners of stable businesses who don't necessarily want to exit but want extra (personal) liquidity. Like anything, it's a tool that can generate great rewards when used properly. Waiting for profits to roll in over many years can be inefficient (from a wealth building PoV) when, for example, the stock market is booming now (but won't be in 3-5 years). It's not because not many people know about this, or use it, that it's a bad idea to use it. PE levels might sometimes be a bit excessive, but it's still a good way to unlock some of your wealth.