Immediate dividend payouts by private equity drain acquired companies of investment capacity

Evidence

Immediate dividend payments to PE investors is another exploitative practice, reducing the capacity of the company to invest in its own labor and productivity; regulations that prevent PE firms from paying dividends in the first two years following an acquisition would be an easy fix. — Andrew deWaard, Derivative Media, 459

Categorization

• ADDENDUM: This is the direct mechanism for the debt-loading and dividend recapitalization that would shape a song or show’s budget — the traceable instrument the reader needs.