The current pain in corporate finance is an atonement for the past errors of mixing up debt and equity
Historians warn that nothing fails like success. Philosophers warn that the most dangerous lies are the lies we tell ourselves. Doctors warn that the dose makes the poison; anything powerful enough to help has the power to hurt. Synthesizing these three warnings is important for corporate India because the climate—low competition, slothful lenders, and high inflation—that encouraged and rewarded entrepreneurs for taking huge amounts of debt for their companies and personal finances no longer exists. This shift is not a passing shower, but a climate shift with fundamental implications for how Indian entrepreneurs must fund, structure and run their businesses. Borrowing equity must end.