I’ve seen large private companies die, and it’s not pretty. At one place I worked, the company struggled for years because of mismanagement. Finally, at the end, the two main shareholders—the CEO and the GM—counted up the cash receipts the day before payday and realized that they didn’t have near enough money to cover the bills.
It was cold. It was horrible. But it was typical, because all along the owners only ever cared about themselves and the money they could make, even while running the company into the ground.
One reason for the company's financial issue were that the two main shareholders always paid their own dividend--20% of the gross--before they paid the payroll or other bills. This left them constantly juggling to meet their financial obligations. No doubt to protect themselves, towards the end they were using cash to pay employees.
One reason for the company's financial issue were that the two main shareholders always paid their own dividend--20% of the gross--before they paid the payroll or other bills.