Originally Posted by
FolderBeholder
The alternative is what...sticking to their original DNA as the company fades into oblivion? That happens too.
What may happen if not done properly is slowly building up debt until the debt exceeds the assets. Then it all comes crumbling down and the future of the company is decided by the court system.
I got lost in trying to figure out how company value, debt, etc.
I think they value the company at about $3 Million. Debt may be as high as $1 Million to $2 Million.
Even if interest rates are kept below 5%, to be able to pay down debt, payments should be around 10%. Thus, one is hitting around $100,000 a year just to service debt, depending on how one calculates.