Say a large company bought out a smaller one. Then in a years time the smaller one bought them selves again, how does that work. Do the board gather round and chip in, do they have a constant IOU to the parent company until it’s all been paid, can the original owner pay it back off again?
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This depends entirely on how the purchase was set up.
Sometimes, a large company will buy a **majority share** of another company but allow it to continue operating “independently.” What that means is that this large company owns more than half of the stock of the company. If the small company manages to raise some money or obtain a loan, they could offer to buy that stock from the large company and buy the majority ownership back.
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