&gt; 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&#x27;s safe to do so.<p>Dividend recaps (as they&#x27;re called in PE jargon) are frequently being used by entrepreneurs and&#x2F;or owners of stable businesses who don&#x27;t necessarily want to exit but want extra (personal) liquidity.<p>Like anything, it&#x27;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&#x27;t be in 3-5 years).<p>It&#x27;s not because not many people know about this, or use it, that it&#x27;s a bad idea to use it. PE levels might sometimes be a bit excessive, but it&#x27;s still a good way to unlock some of your wealth.