Quote:
Originally Posted by dominicperry
I know this is OT, but how did Avid end up in debt? What were they trying to do that meant it was necessary to take on debt - it has a number of well established products and is a recognised leader in its field, where is the need to do something extravagant? And what was that extravagant thing?
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The extravagant thing was supporting years of incompetent management.
And debt can be great financial tool to help fund growth of companies with solid cash flow, is non-dillutive, etc. but it's maybe more suitable to fund more predictable growth than extravagant projects... but misapplied or when companies are struggling debt is a noose. And Avid has been struggling for years. And now Avid is pretty much financially defined by it's debt obligations.