reply
by a searcher
5yrs ago
from University of Pennsylvania
in Los Angeles, CA, USA
There can be. But if you are thinking about dividends before you enter the company, then maybe there aren't attractive enough uses of excess capital to warrant getting into the business in the first place.
reply
by a searcher
5yrs ago
from Purdue University
in San Pedro Garza García, Nuevo Leon, Mexico
Thanks! The question comes mostly from first time Search fund investors. The main question became time based “how long will the money be frozen till I receive any cash back”. That is why dividends made sense for them.