Eli5: How an individual take a loan to buy a company, and have the purchased company responsible for paying back the interest?

Question

Can the company also be made responsible to pay back the loan itself, as well as the interest?

In: 19

Answer 1

Once it’s yours you can do whatever you want with it but you only make money if the thing you bought is worth more than the cost of the loan. That can only happen if the people currently running the company are incompetent and/or too nice to do things like fire everyone or back out of promised pension obligations.