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No the business doesn’t have to make a profit it just needs enough revenue to service the debt Of course what happens is many business geared this was don’t ma
by youngtaff 3y ago
No the business doesn’t have to make a profit it just needs enough revenue to service the debt
Of course what happens is many business geared this was don’t make a profit, fail their banking covenants, interest on the bond rises and eventually they go bust leaving lenders out of pocket
It’s happened to many PE owned businesses