Let's say I start a lemonade stand. I sell lemonade for a pretty big markup... say €3 a cup. I add lots of ice to it as well, this is not a good deal for lemonade for the customer... but people seem REALLY thirsty and I am getting a good flow of customers. A local businessman approaches me and says he will lend me money to expand operations. He offers me €5 million. I take his money and I use €1 million to expand operations, I use €3 million to invest in the rights to every street corner in town, and I pocket €1 million. Then the value of the contracts for every street corner in town plummets. Suddenly these street corner contracts are worth €700,000 and I paid €3 million.
Now my business is worth €1.7 million. €3.3 million disappeared and I owe that businessman + interest.
If I sell lemonade for €3 a cup, but I'm only getting 50 customers a day with my expanded operations it will take me 60 YEARS just to pay down the principle.
Even if my product is expensive. Even if it seems like, for a lemonade stand, I'm doing well. Debt, the value of my assets, and mismanagement or corruption can vastly outweigh these factors.