ProFundraising · Simulator
Dividend Recapitalization Simulator
Take cash out without selling the company.
Assumptions
Cash dividend to owner
$6,000,000
Remaining equity value
$12,000,000
Total owner value
$18,000,000
| Line | Amount |
|---|---|
| Company value | $20,000,000 |
| New debt | $8,000,000 |
| Cash dividend | $6,000,000 |
| Equity retained | $12,000,000 |
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Built by The Crimson Bench · Educational model, not financial advice
About the Dividend Recapitalization Simulator
Model adding debt to fund a dividend to owners, and see the cash out and remaining equity value.
It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.
How the Dividend Recapitalization Simulator Works
The model takes 3 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.
The Inputs
| Assumption | Example value |
|---|---|
| Company value | $20,000,000 |
| Current debt | $2,000,000 |
| New total debt | $8,000,000 |
Worked Example
Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.
Cash dividend to owner
$6,000,000
Remaining equity value
$12,000,000
Total owner value
$18,000,000
| Line | Amount |
|---|---|
| Company value | $20,000,000 |
| New debt | $8,000,000 |
| Cash dividend | $6,000,000 |
| Equity retained | $12,000,000 |
The Operator's Read
A dividend recap lets owners take chips off the table while keeping control — the company borrows to pay them. The trade is added leverage and risk; a downturn is far more dangerous with the extra debt. Educational only.
Assumptions & Limitations
- •The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
- •Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
- •It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
- •This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.
Frequently Asked Questions
What does the Dividend Recapitalization Simulator calculate?
Model adding debt to fund a dividend to owners, and see the cash out and remaining equity value. It takes 3 assumptions — Company value, Current debt, New total debt — and returns Cash dividend to owner, Remaining equity value, Total owner value, along with a full projection table you can export.
How do I use the Dividend Recapitalization Simulator?
Enter your own figures in the input fields above — Company value, Current debt, New total debt, and the rest. The model recalculates instantly and shows the resulting Cash dividend to owner and full breakdown. No sign-up needed to run it.
Is the Dividend Recapitalization Simulator free?
Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.
What's the difference between this and a free calculator?
A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.
Who built the Dividend Recapitalization Simulator?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.
Is this financial advice?
No. The Dividend Recapitalization Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.
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The Crimson Bench · Est. 2002 · Founded in New York City
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