date:Nov 27, 2012
which is actually a troubled company, it has a product or a service which just doesnt fit the market anymore, it has no future. Even if it had zero debt, its still a dying company.
But at the other end of the spectrum, it doesnt matter how good a company is. If you load it up with too much debt, it becomes unable to service that debt.
Before the crash, when the private equity boom was at its peak, there were examples of companies being geared up so much that just a few per cent fall in profits