A company is loss-making and has debt. Does it still have value?

This is a fragile situation.
The company is losing money and has obligations to pay interest and loan instalments.

But loss ≠ zero value.

Here’s what we usually look at beyond the headline loss:

If we ignore fixed costs for a moment, is the business profitable at the variable cost level?
Fixed expenses don’t automatically increase with sales — volume still matters.

What are the loan terms?
When is repayment due?
Can the company renegotiate, extend, or restructure?

What about the asset base?
Land, machinery, inventory, licenses — some assets can be sold or redeployed for value.

As long as the business is operating and owns assets,
even with debt and losses, there is still value to be analysed and quantified.

#ORNA #Valuation #M&A