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jerryking : deal-making   49

GMP Capital’s sale to Stifel Financial marks the end of an era on Bay Street
December 6, 2019 | The Globe and Mail | ANDREW WILLIS.

On Friday, the GMP era effectively came to an end. U.S. investment bank Stifel Financial Corp. closed its purchase of the Toronto-based brokerage for about $65-million, and plans to rename it..........GMP started out as a partnership and later became a public company that was always far smaller than global dealers, and firms that Canadian banks started acquiring in the late 1980s.
For Canada’s financial community, saying goodbye to GMP means closing the door on a way of doing business, a lucrative and often colourful approach to deal-making. GMP brought together capital-starved entrepreneurs and deep-pocketed fund managers. The partners put up their own cash – mortgaging homes or draining savings – to fund the operation. GMP was the first to raise money for businesses that became some of Canada’s best known, such as Blackberry Ltd., Birchcliff Energy Ltd., Canopy Growth Corp. and Goldcorp Inc. It is also a major trader in their shares......In extremely simple terms, independent firms such as GMP run on relationships and ideas. Larger rivals are creatures of process and scale. The biggest players have now come to dominate capital markets........the four Day 1 GMP partners: the late Brad Griffiths, mining financier Gene McBurney, trader Mike Wekerle, now a venture capitalist and reality TV star, and salesman-turned-CEO Kevin Sullivan......The new model for independent dealers in Canada is to be small and nimble, or focus on wealth management. The model that worked so well at GMP – using commissions from stock trading to cover day-to-day costs, and taking the lucrative fees from advisory work as profits – doesn’t work when brokerage houses offer to trade stocks for free. GMP’s run is unlikely to be matched.
Andrew_Willis  Bay_Street  boutiques  brokerage_houses  compensation  deal-making  exits  farewells  GMP  investment_banking  nimbleness 
11 weeks ago by jerryking
Can contracts use pictures instead of words? | Financial Times
Bruce Love OCTOBER 22 2019

* David Sibbet in "Visual Meeting"
* Dan Roam in "Blah Blah Blah: What To Do When Words Don’t Work" 
Both writers advocate the use of graphics and charts to better communicate ideas between people.

Visuals and plain language make an adversarial process more constructive.

Every contract the company writes represents a business relationship that a company would prefer to see fulfilled mutually.....unwieldy contracts stand in the way of harmony.....you spend  so much time building customer relationships that you don’t want a contractual negotiation to then dismantle that relationship brick by brick.....redraft contracts using as much plain English as possible......Making contracts more faithful to the relationships they represent is a popular goal with commercial contracts.....businesses should write contracts that specify mutual goals and governance structures to keep the parties’ expectations and interests aligned over the long term........especially for “highly complex relationships in which it is impossible to predict every ‘what if ’ scenario”.....a curious innovation gathering steam in the legal world: visual contracts that incorporate images alongside or even replace text. The underlying idea is that a picture paints a thousand words.....visual contracts can be used for simple and complex agreements.....there are growing libraries of contract terms that can be assembled as modules to build complete agreements. The goal is to provide businesses with best practice examples of the most frequent and least divergent contract clauses.....While there are many benefits to visual contracts, “simple is difficult”..... It is counterproductive for negotiators to codify every minute detail of a relationship when instead much can be ascribed to a spirit of agreement, more similar to a constitution or code of ethics.
aligned_interests  books  charts  Communicating_&_Connecting  comprehension  contingencies  contracts  deal-making  graphics  infographics  legal  negotiations  plain_English  visualization 
november 2019 by jerryking
Kawhi’s silence was golden for making a deal without making enemies - The Globe and Mail
CATHAL KELLY
PUBLISHED JULY 7, 2019

"Never let anyone outside of the family know what you're thinking.". Vito Corleone.
basketball  Cathal_Kelly  closedmouth  cunning  deal-making  Kawhi_Leonard  lessons_learned  NBA  silence  smart_people  taciturn  Toronto_Raptors  wisdom 
july 2019 by jerryking
How a private equity boom fuelled the world’s biggest law firm
June 6, 2019 | Financial Times | James Fontanella-Khan and Sujeet Indap in New York and Barney Thompson in London.

Jeff Hammes took the helm at a Chicago-based law firm called Kirkland & Ellis in 2010, with the aim of turning it into a world-beater, few in the industry thought he stood a chance.......known as a good litigation firm in Chicago with a decent mid-market private equity practice, in the blockbuster dealmaking world, however, the firm was largely irrelevant. Nobody took them seriously on Wall Street.....Fuelled by explosive growth in private equity, aggressive poaching of talent and most of all, a business model that resembles a freewheeling investment bank, Kirkland has become the highest-grossing law firm in the world.....This rise reflects the shift in the financial world’s balance of power since the financial crisis. Investment banks, the dominant force before 2008, have been eclipsed by private equity firms, which now sit on hundreds of billions of dollars of investment funds.

Kirkland thrived by hitching itself to this dealmaking activity. The firm presents with a relentless — many say ruthless — focus on growth, a phenomenal work ethic and a desire to up-end what it sees as a lazy hierarchy. Key questions: can its winning streak can continue? Will its private equity clients continue to prosper? how will Kirkland cope if and when the private equity boom ends? And can a firm with such a hard-charging culture survive in the long run?....Robert Smith’s Vista Equity has grown to manage assets from $1bn to $46 in a decade while working with Kirkland.....To establish Kirkland as a major player, Mr Hammes turned his attention to recruitment. ....poaching proven M&A experts and targeting all areas of dealmaking.....To entice the best lawyers to join its ranks, Kirkland managed to exploit a structural rigidity in its more traditional white-shoe and magic circle rivals. A dwindling but still significant number of elite firms remunerate equity partners using a “lockstep” model......
Kirkland sought rising stars in their late thirties who were at the bottom of this ladder, stuck in the queue for the highest share of profits. Part of its pitch was money — “With compensation, we can go as high as we want,” says one partner — but the other part was an almost unprecedented level of autonomy.
Big_Law  booming  business_development  Chicago  compensation  concentration_risk  dealmakers  deal-making  eat_what_you_kill  financial_crises  growth  hard-charging  high-end  hiring  howto  hustle  Kirkland_Ellis  law  law_firms  litigation  mid-market  organizational_culture  poaching  private_equity  recruiting  Robert_Smith  superstars  talent  turnover  Vista  Wall_Street  winner-take-all  work_ethic  world-class 
june 2019 by jerryking
JAB’s Peter Harf: hire ambitious talent and give them a mission
February 16, 2019 | | Financial Times | by Leila Abboud and Arash Massoudi.

JAB oversees its portfolio of coffee, beverages, and casual dining companies. .....When everything was going wrong last year at Coty, the cosmetics company backed by investment group JAB Holdings, Peter Harf reacted with characteristic ruthlessness, replacing Coty’s chief financial officer and chief executive, and taking back the Coty chairmanship from his longtime associate, Bart Becht. Describing last year’s share price decline of more than 60% as “unacceptable” for JAB and its co-investors, Mr Harf says the situation “had to have serious consequences” even for his inner circle......Harf believes that identifying talented people — and incentivising them through performance-based pay — have been key to his success over his nearly 40-year career..... just as important to Harf is knowing when to jettison those who are no longer serving the mission he has overseen since he was 35: growing the wealth of Germany’s reclusive Reimann family who are behind JAB....Harf's vision was for JAB to be modelled on Berkshire Hathaway, the investment conglomerate built by his idol, Warren Buffett. Success would come not only from backing the right leaders but by patiently building brands, embarking on deals and taking companies public to cash in on bets....Harf felt he had assembled a dream team: “My mantra has always been that I need to hire people who are better than me. Lions hire lions and sheep hire other sheep.”

Three questions for Peter Harf
(1) Who is your leadership hero?

“Warren Buffett. Hands down. All this stuff that I intend to do to make JAB into a long-term investment vehicle, he does it to perfection. He’s the greatest investor in the world, and I want to be like him. If we invest as well as Warren, we’ve won. Very simple.”

(3) What was your first leadership lesson?

One of my biggest role models was Bruce Henderson, the founder of Boston Consulting Group. When I worked for him, I prepared a three-page analysis about a problem. It had 10 bullet points as the conclusion. He dismissed it as way too complicated and said: “Don’t try to field every ball.” He meant that if you wanted to be a good leader, you have to be able to focus on the important stuff first.
+++++++++++++++++++++++++++++++++++++++++++++++++++
The trouble often starts when leaders start listing five or seven or 11 priorities. As Jim Collins, the author of the best-selling management books “Good to Great” and “Built to Last,” is fond of saying: “If you have more than three priorities, you don’t have any.”
BCG  Berkshire_Hathaway  beverages  casual_dining  coffee  commitments  CPG  dealmakers  deal-making  departures  exits  family_office  family-owned_businesses  HBS  hiring  investors  JAB  Keurig  lifelong  mission-driven  private_equity  portfolio_management  ruthlessness  talent  troubleshooting  Warren_Buffett 
february 2019 by jerryking
Michael Ovitz, Hollywood super-agent, on ‘winning at all costs’
SEPTEMBER 28, 2018 | Financial Times | by Matthew Garrahan.

In Ovtiz's 20 years at CAA, it assembled hit after hit, including Jurassic Park, Tootsie, Goodfellas and Dances with Wolves. He talks about the agency as though describing a military campaign (he is a keen student of Sun Tzu’s The Art of War). “When I was at CAA, I had a singular mission, which was to win at all costs,” he says. “We were ultra-competitive and we were in a service business but my thesis was that we weren’t selling a product. We were selling and putting together people’s dreams . . . if we showed a weak link then we would be vulnerable. Vulnerability was a sin.”....Ovitz explains that the memoir evolved from an earlier idea about a book on deals. He played a leading role in the arrival of Japanese companies in Hollywood three decades ago, advising Sony on its 1989 purchase of Columbia Pictures and the sale a year later of Lew Wasserman’s MCA (later renamed Universal, and now part of Sky’s new owner Comcast) to Matsushita. Advising Japanese buyers was a strategic move, he explains. “If the studios are in trouble and going to go out of business, we lose leverage and our clients lose jobs. But if we can bring people in to buy the studios, not only do clients continue to get jobs but we’re the people talking to the owners.”...Ron Meyer and Ovitz
slowly built an empire, starting in television and moving into films, with the aim of representing every significant writer, director and star in town: “no conflict, no interest” was his mantra. It was a radically different model to what had come before. “Agents traditionally fielded orders, so if I was your agent and someone had a job, they’d call me and ask for you,” he says. “Or they’d tell me they had an assignment and, if you happened to be available, I’d pitch you.” Agencies were like “clearing-houses”.....that was archaic. You’re a writer, you’re loaded with ideas . . . why don’t we take those ideas and add elements to them and then sell the whole thing and let you control it? Why would we just wait to answer the phone?”.....Agents took on a more central role in Hollywood after CAA’s rise to power, assembling the composite parts of a film or television project before taking the “package” of script, star and director to the studios....."[Endeavour's] thesis is very similar to the thesis we had [at CAA], which is to expand into new areas that can service clients.”
actors  books  CAA  creating_valuable_content  dealmakers  deal-making  Hollywood  memoirs  Michael_Ovitz  professional_service_firms  Sun_Tzu  talent_management  talent_representation  vindictiveness  Lew_Wasserman 
october 2018 by jerryking
GE: industrial stalwart contemplates a general overhaul
OCTOBER 5, 2018 | Financial Times | by Ed Crooks in New York.

“GE Power is at death’s door,” says Scott Davis, an analyst at Melius Research. “It’s going to require a massive change in strategy to fix it.”

The Alstom deal is far from being GE’s only strategic mis-step. But it is emblematic of two of the company’s flaws: a weakness for dealmaking, and an inability to respond effectively to a changing market. Together, those failings go a long way to explaining why one of the greatest names in American business, an original member of the Dow Jones Industrial Average at its creation in 1896, has lost more than 80 per cent of its market capitalisation since 2000......while GE’s leaders were focused on a deal that might have been perfect 10 or 20 years ago, they were underestimating the scale of the changes hitting the electricity industry. As the costs of wind and solar power have plunged, they have become competitive against the gas-fired and coal-fired power plants that are GE and Alstom’s forte. It is a mistake that companies often make at times of structural change, says Kingsmill Bond of the Carbon Tracker Initiative: “They confused the current size of the market with the future growth of the market.”.....As the scale of the problem emerged, Mr Flannery moved to cut costs. Last December he announced 12,000 jobs would go from the power division. But reducing headcount is slow work in Europe, especially in France, where Mr Immelt had pledged to create a net 1,000 additional jobs by the end of 2018......The urgency of the crisis creates opportunities to make radical changes. A group of investors including hedge fund manager Sir Christopher Hohn of the Children’s Investment Fund on Friday published a letter to Mr Culp, urging him to scale back investment in gas and coal power and embrace clean energy.....Giving up on selling new turbines to concentrate on the more lucrative services business would be a momentous step, but Mr Davis says that like General Motors during the 2008 financial crisis, the business is in urgent need of a radical rethink.
Alstom  CEOs  change  cost-cutting  creating_opportunities  deal-making  DJIA  energy  exits  GE  Jack_Welch  Jeffrey_Immelt  John_Flannery  shifting_tastes  Siemens  structural_change 
october 2018 by jerryking
Air Canada CEO Calin Rovinescu’s hardball tactics benefit everyone but Aimia - The Globe and Mail
ANDREW WILLIS
PUBLISHED 3 DAYS AGO

Mr. Rovinescu, whose career includes stints as a lawyer and investment banker along with an investor-friendly flight at the helm of Air Canada, can take credit for launching Aimia as a public company back in 2005. Air Canada’s CEO also pulled the rug out from under Aimia, setting the stage for this takeover, by announcing in May, 2017, that the airline planned to end its relationship and start its own loyalty program when its contract expires in 2020. That announcement knocked back Aimia’s stock price by more than 50 per cent, and shares have never recovered.

Air Canada’s decision to spin out Aimia, along with the airline’s maintenance business and regional carrier, amounted to inspired financial engineering. The offerings brought in the cash needed to spruce up the fleet with fuel-efficient jets and pay down debt. It’s fair to say these deals set the stage for Air Canada’s stunning stock-price performance on Mr. Rovinescu’s watch.

The decision to buy back Aimia is also strategically and financially sound. Loyalty programs and the data they generate are valuable assets for airlines and credit-card companies. Along with Air Canada, this takeover is backed by Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada Corp. The consortium leaves long-time Aeroplan partner American Express on the outside looking in........Air Canada sold high on Aimia, then knocked the stuffing out of the company by ending its partnership. Now, the airline is buying low. Long-time Aimia shareholders will emerge from this journey badly bruised. But Mr. Rovinescu’s tactics are good business.

Students of corporate deal-making may recall how TD Bank, a member of the Aimia takeover consortium, played capital markets to its advantage. In 1999, the bank raised $1.5-billion by spinning off a stake in its discount brokerage division, TD Waterhouse. The move gave TD Bank the capital it needed to buy Canada Trust the following year, a transformative deal.

By 2001, the dot-com bubble had burst, taking with it the premium valuation on discount brokerages. The parent bank bought back TD Waterhouse for a fraction of the price it had sold shares for, just two years earlier. TD Waterhouse shareholders complained, but at the end of the day, they sold. TD Bank’s bosses came out of the experience with a stronger company and burnished reputations.
Aeroplan  Aimia  Air_Canada  Andrew_Willis  Bay_Street  Calin_Rovinescu  CEOs  credit_cards  deal-making  dealmakers  loyalty_management  offensive_tactics  hardball  financial_engineering  transformational 
july 2018 by jerryking
Goldman eyes expansion of investment banking
March 23, 2018 | FT | Ben McLannahan.

The contrasting fortunes of the rivals for the top spot suggest that Goldman sees no immediate turnround in trading, and in fixed-income trading in particular, where clients such as hedge funds have been reluctant to put on big trades in listless, directionless markets. Mr Blankfein noted on Friday that the entire industry had been hurting, as overall revenues roughly halved from their peak in 2009. But he said Goldman had “under-invested” in simpler products such as cash bonds, “which led to lower penetration with certain large asset managers and banks.”

The future is dealmaking, more relationships; they can’t just deal with the blue-chips and the next rung down

David Hendler, Viola Risk Advisors
The doubling down in investment banking suggests that Goldman is “going where the margins are,” said David Hendler, founder and principal of Viola Risk Advisors. “The future is dealmaking, more relationships; they can’t just deal with the blue-chips and the next rung down.”
directionless  Goldman_Sachs  investment_banking  growth  Lloyd_Blankfein  relationships  expansions  deal-making  blue-chips 
march 2018 by jerryking
Boost your sales with tips from Warren Buffett
DECEMBER 18, 2012 | The Globe and Mail | by HARVEY SCHACHTER, SPECIAL TO THE GLOBE AND MAIL.

How to Close a Deal Like Warren Buffett
By Tom Searcy and Henry DeVries
(McGraw-Hill, 217 pages, $24.95)

The authors recommend a process they call "the triples" that will help you make the case for your product or service:

Triple 1: The prospect's three problems

First, find out – and write down – the three biggest problems the prospect faces in the area your product or service can help. This aligns you with the buyer's interests.

Triple 2: Your three-part solution

Now think carefully about how you can solve each problem. As you write it out for the client, remember that generic language such as "improved," "better," and "big difference" are not that compelling. Use actual numbers and refer to specific pressure points to focus on the outcomes your prospect can expect.

Triple 3: Your three references

The third step is to identify at least three references you can share who have experienced similar outcomes when using your products and services. This may be sensitive, given confidentiality and competitive issues. But the authors stress: "The most effective way to get the attention of prospects is to drop the names of others just like them."

The authors urge you to become a student of psychology and develop profiles of members of the prospect's team. Try to determine each person's fears, since those qualms may send your pitch into the ditch. Determine each person's point of view about your solution, as well as any other personal trait or event that might be of importance. At the same time, study the team dynamics, from where people sit around the table to who they defer to.

The most dangerous person will be "the eel." The authors insist that "in every deal, and at every prospect's table, there is always an eel – a person who is against the deal. Always. Eels have a tendency to hang out in the shadows. They are hard to get to, and they usually talk you down when you're not around."

Usually eels are driven by fear that they don't want to acknowledge, so instead they insist they are against the deal on principle. They are dangerous, and must be identified early. Then you can try to co-opt them, taking the eel's ideas and baking them into your proposal.
aligned_interests  books  deal-making  eels  enterprise_clients  Harvey_Schachter  indispensable  JCK  management_consulting  obstacles  pitches  problems  problem_solving  psychology  references  salesmanship  solutions  tips  think_threes  Warren_Buffett 
august 2017 by jerryking
How to be a Top-Gun Deal Maker | Ivey Business Journal
by: Michael Benoliel

[8 April/9 April 2017; Letter to the editor by Bruce Mathers] "It is axiomatic that negotiators who understand their opponents have a strong advantage"
Robert_Johnson  BET  dealmakers  deal-making  howto  moguls  CATV  African-Americans  entrepreneur  Viacom  Second_Acts  NBA  trailblazers  negotiations 
july 2015 by jerryking
The networker: Martin Sorrell of WPP - FT.com
March 13, 2015| FT | Andrew Hill.

After 30 years, WPP now embraces some of the best-known names in marketing, advertising and public relations, including Ogilvy & Mather, J Walter Thompson and Burson-Marsteller.
In the process, Sorrell has become one of the best-connected executives in the world....Sorrell performs a similar role at WPP, using a combination of visionary pronouncements and obsessive micromanagement of clients, finances and employees. ....later this year a new chairman, Roberto Quarta, will take over. Quarta, a tough Italian-American with a background in private equity, is expected to be less submissive to WPP’s chief executive than previous chairmen. The question of how long Sorrell ­continues in his role, who could succeed him, and what will happen to the WPP empire if he goes, will be the most important issue on Quarta’s desk....“[If] I have been behaving as an owner, rather than as a ‘highly paid manager’ . . . mea culpa. I thought that was the object of the exercise,” he wrote.
Martin_Sorrell  WPP  advertising  advertising_agencies  succession  deal-making  WEF_Davos  legacies  JWT  Ogilvy_&_Mather  owners  Burson-Marsteller 
march 2015 by jerryking
Breaking down HBC’s big deal – and why it matters - The Globe and Mail
TIM KILADZE
Breaking down HBC’s big deal – and why it matters
SUBSCRIBERS ONLY
The Globe and Mail
Published Wednesday, Feb. 25 2015
deal-making  real_estate  HBC  Tim_Kiladze  Bay_Street  retailers  RioCan  Richard_Baker  commercial_real_estate 
february 2015 by jerryking
When Media Mergers Limit More Than Competition - NYTimes.com
James B. Stewart, a columnist for The New York Times, explores the antitrust concerns related to a potential deal between Time Warner Inc. and 21st Century Fox. Publish Date July 25, 2014.
antitrust  consolidation  mergers_&_acquisitions  M&A  deal-making  regulation  21st_Century_Fox  competitive_landscape 
july 2014 by jerryking
Ken Lombard, on Staying a Student of Business - NYTimes.com
By ADAM BRYANT
Published: July 6, 2013

When I go and speak to B-school students, the point I try to emphasize is, don’t stop being a student of the game. Don’t think that when you get out of this institution with your degree that now you walk on water. This should make you hungrier than you’ve ever been, because there are people who are coming out with fewer credentials who are very, very hungry....The time I spent working with Howard Schultz at Starbucks [as president of Starbucks Entertainment] was a tremendous learning experience for me in a lot of ways. He was very disciplined in that he was such a thorough and deep thinker, and would really commit to diving in and looking closely at any particular situation, and would turn over every stone. But he would not get stuck on the analysis side, and would have the guts to make the decision, and not accept the status quo....I’m a guy who comes from hard work, and I’m a guy who comes with an approach that says, before I make a tough decision, I want to be on the ground, I want to roll up my sleeves and understand the opportunity. While I understand that analysis tells you what you need to hear in how you need to structure a deal, there’s a difference between deal makers and analysts. Analysts can tell you everything wrong with the deal; the deal maker is going to try to figure out a way to come up with a structure that makes sense.

That doesn’t mean you should ignore what the numbers tell you, but you should try to figure out a structure that mitigates your downside. I try to make sure they understand that deal-making takes some guts. You can’t develop that in a short period. You have to be willing to go out and get the experience, and not think that this is going to happen for you overnight.

You can speed up the learning curve by positioning yourself in a way so people who have the experience want to help you. You have to make it conducive for them to really want to provide you with the information. Then become a sponge. That will help accelerate some of it. Go to someone who has done this before and try to get them to provide you with some guidance, so you’re not reinventing the wheel.
African-Americans  Magic_Johnson  commercial_real_estate  Starbucks  torchbearers  entrepreneur  dealmakers  deal-making  learning_curves  mentoring  life_long_learning  analysis  hard_work  Jason_Isaacs  risk-mitigation  staying_hungry  analysts  assessments_&_evaluations  playing_in_traffic  reinventing_the_wheel 
july 2013 by jerryking
Meet Bay St.'s new breed of deal makers
April 4, 2007 | G&M pg. B10 | by Jacquie McNish.

Days after Ottawa's Halloween clampdown on income trusts, a team of Bay Street dealmakers flew to New York to alert a handful of private equity funds to potential Canadian trust takeovers.

Investment bankers pitch deals to ravenous private equity buyers all the time, but this group was unique because they were lawyers.

Canadian firms can no longer be complacent about private equity deals. As traditional Canadian corporate clients fall on the takeover battleground, Canada’s major firms are moving quickly to grab their share of private equity deals.

Some law firms are wooing private equity funds by aggressively promoting deals, while most are starting to share risks by taking fee cuts on unsuccessful takeovers and pocketing fee premiums on deal victories.

A few are so eager to represent the powerful acquirers that a single firm will act for multiple buyers vying for the same target.

The deal frenzy is shifting legal M&A away from long-term relationships to a more transaction-oriented practice that is seeing firms hop in and out of deals with an ever-changing group of buyers and sellers.

Stephen Donovan, co-head of Torys’ Private Equity Group, adds, "It is no longer enough to just know the law. There is a much more deliberate effort to bring deals to clients."
deal-making  dealmakers  lawyers  law_firms  Bay_Street  private_equity  prospectuses  complacency  crossborder  M&A  risk-sharing  transactions  relationships  transactional_relationships  rescue_investing  pitches  proactivity  entrepreneurial  opportunistic 
january 2013 by jerryking
Animal spirits will stir buyout barons before CEOs
December 18, 2012
Print Print | ShareThis
Animal spirits will stir buyout barons before CEOs
By Jeffrey Goldfarb
CEOs  deal-making  private_equity  economic_dynamism  buyouts  idle_funds  cash_reserves 
december 2012 by jerryking
Obama the Dealmaker - NYTimes.com
By DAVID BROOKS
Published: November 12, 2012
deal-making  dealmakers  Obama 
november 2012 by jerryking
Deals Close Faster With Due Diligence Filters
May 1, 2000 | Venture Capital Journal | William Zucker.

From Introduction capital's 7th annual Canadian Alternative Investment Forum

Values and ensuring ethical alignment, time horizon or milestone alignment.
Bewares partners piggybacking continuously on your DD.
Can your involvement add value to a project? If not personally, are there people in your network who cans how you holes that you cannot see?

Look at the financial return, the quality of the asset, the quality of management.
due_diligence  deal-making  venture_capital  vc  start_ups  business_planning  trends  CAIF  speed  time_horizons 
september 2012 by jerryking
`The Hottest Hand' In Dealmaking -
January 24, 1993 | Businessweek | Mark Maremont
deal-making  dealmakers  LBOs 
august 2012 by jerryking
Reginald Lewis
August 31, 1987 | Business Week | Robert Bork Jr and Cynthia Kyle
Reginald_Lewis  deal-making  Wall_Street  LBOs  TLC  African-Americans  entrepreneur  Beatrice  role_models  inspiration  dealmakers 
august 2012 by jerryking
At The Food Chains, It's All Gulp And Swallow -
May 07, 1995 | Businessweek | By Eric Schine in Los Angeles, with Leah Nathans Spiro in New York
deal-making  supermarkets  KKR  roll_ups  grocery  LBOs 
july 2012 by jerryking
Giving Great Advice
Janaury 2008 | HBR | Interview of Bruce Wasserstein by Tom Stewart and Gardiner More.

HBR’s editor, Thomas A. Stewart, and senior editor Gardiner Morse
spent many hours at Lazard and interviewed Wasserstein, setting out to understand how he creates value as a manager, as a deal maker, and as a counselor to CEOs. How does he attract and
manage talent, build and sustain knowledge businesses, size up companies and industries, and craft advice?

Wasserstein describes his approach as discovering whether a deal or strategy “makes sense.” Such sensemaking seems to underlie every move he makes, and it has paid off handsomely. Following is an edited presentation of HBR’s conversations with Wasserstein...first to execute deals really well and then to market that track record.

How do you develop individual talent? The idea is to create a hothouse where young talent is nourished by our culture and people are encouraged to think creatively, think deeply,
think about the long-term client relationship—but above all, think. I want them to reflect on what they are doing and why, and then wonder,“Can we do better?”

Talk about the advice business. What are CEOs looking for as you’re helping them understand the landscape? What do they
need that you’ve got? The point of advice is to create value. The
first thing in that effort is not to assume the banker knows more than the client. The second thing is to remind the CEO that corporations have to change in order to prosper and that inaction isn’t prudent—it’s radical. What we can do is help the CEO think through an array of options, partly by asking
the necessary questions, but also by inserting some very practical observations about the effects of specific decisions.
Good advice is at least as qualitative as it is quantitative....On the other hand, there’s the more qualitative part of the advice. This strikes me as being an underdeveloped side of most investment-banking relationships. Knowing the characteristics of the industry and possible consequences of a deal comes from having seen what’s happened in many companies and industries over time. So, for example, you might say, “Look, you need a very different mentality to manage this type of business than your other businesses. You have a process-oriented mentality, but you need a more market-oriented approach. Are you confident that you’re going to be able to keep the number two guy in the company you’re acquiring? Because the number-one guy will probably leave.”

Deals that make sense. Can you elaborate on that? Law school taught me to focus on dissecting premises. Anyone who’s a good logician can build an argument on just about any premises.
The argument may be taut, but the premises may be faulty. When we do deals, I always ask, “Are the premises sound? Is the risk exposure worth it for this particular company, and have
I protected my client’s back?” We proceed by identifying and evaluating qualitatively and quantitatively the key elements of risk in the transaction—overall economy risk, strategic
risk, operating business risk, financing risk, people risk. Similarly, you need to fully understand the upsides. What are the opportunities in cost cuts, synergies, internal development,
additional investments, or revenue enhancement? It’s useful to apply all the paraphernalia of mathematical science in an analysis, but focusing on the sense of things is a much better use of time. Part of determining the sense of a deal involves understanding the macroclimate, the broader context, which I think gets too little attention.

...We think of each deal in terms of a flow chart with a series of black boxes. Each box represents a facet of the deal—for example, valuation, financing structure, approach to the other party, negotiating tactics and deal process, taxes, legal structure, contracts, market reaction, and regulatory hurdles.
advice  argumentation  Bruce_Wasserstein  contracts  cost_of_inaction  dealmakers  deal-making  downside_risks  financial_advisors  financial_risk  howto  investment_banking  J.D.-M.B.A.  Lazard  logic_&_reasoning  M&A  market_risk  mergers_&_acquisitions  operating_risk  problem_solving  product_risk  risk-assessment  synergies  team_risk  upside 
july 2012 by jerryking
Note on Deal Making
1994 | The University of Western Ontario | Steve Suarez and Jim hatch
deal-making  Ivey  funding  finance  investing  frameworks  dealmakers 
may 2012 by jerryking
Venture Capital's New Adventure - WSJ.com
December 21, 2006 | WSJ | By PUI-WING TAM.

Usual Role of Nurturing Start-Ups Takes On a Private-Equity Twist; Mr. Lanza Becomes a Deal Maker...."I suddenly became aware that we were triggering a rollup in the sector and my phone was ringing off the hook," says Mr. Lanza, 50 years old. "It was very surreal. I'm used to wandering the halls of Stanford to fund companies founded by two guys and a dog."

Like Mr. Lanza, other venture capitalists have broadened their roles beyond investing in and nurturing start-up businesses. They more often find themselves handling spinouts -- or buying units of publicly traded companies -- as well as so-called rollups and buyouts, and generally engaging in more-complex financial transactions.

In other words, they have stepped into the realm of private equity, now one of the finance world's hottest arenas. The change could make investing in venture-capital funds more risky.
venture_capital  vc  private_equity  Intel  deal-making  spin-offs  spinups  roll_ups  buyouts  Pui-Wing_Tam  carve_outs 
april 2012 by jerryking
An M.&A. Jedi Returns to Morgan Stanley - NYTimes.com
January 19, 2012, 8:00 pmMergers & Acquisitions
A Jedi of Deals Brings His Magic Back to Morgan Stanley
By EVELYN M. RUSLI
mergers_&_acquisitions  M&A  Morgan_Stanley  deal-making  investment_banking  dealmakers 
january 2012 by jerryking
Think Globally, Deal Locally - NYTimes.com
September 28, 2011,
Think Globally, Deal Locally
By BEN PROTESS

forging deals in developing regions comes with a unique set of uncertainties, including political, economic and regulatory risks. Wal-Mart Stores pulled out of Moscow late last year, citing an inhospitable climate for acquisitions. Ikea, fed up with corruption in Russia, suspended further investments there in 2009.

In Brazil, rising inflation has spooked investors, contributing to a 26 percent decline this year in the MSCI Brazil index.
private_equity  emerging_markets  decline  deal-making  globalization  Indonesia  investment_banking  risks  frontier_markets  uncertainty  political_risk  regulatory_risk  economic_risk 
september 2011 by jerryking
Lunch with the FT: Amanda Staveley - FT.com
August 5, 2011 5:08 pm
Lunch with the FT: Amanda Staveley

By Roula Khalaf
jck  deal-making  role_models  women 
august 2011 by jerryking
Brew a good deal with the right ingredients
When buying a business, check to see whether you have the prerequisites, or risk wasting your time.

* Do you have the experience necessary?

* Do you have the combined skill set?

* Do you have the business contacts?

* Are you able to retain the key employees?

* Will you be able to keep the major customers of the business afterward?
brewing  deal-making  exits  buyouts  beers  ProQuest  buying_a_business 
march 2011 by jerryking
Brazil's New Global Deal Makers - NYTimes.com
September 2, 2010 | | L arry Rohter, a DealBook colleague,
is the author of “Brazil on the Rise: The Story of a Country
Transformed” (Palgrave Macmillan), which came out this week. He writes
about the symbolism of the buyout bid for Burger King:
3G_Capital  Brazil  deal-making  globalization  mergers_&_acquisitions  M&A  books  dealmakers 
september 2010 by jerryking
Fortress Paper: Outside the box, crazy like a fox -
Aug. 26, 2010 | The Globe and Mail | Dave Ebner

North Vancouver, B.C. — From Thursday's Globe and Mail Published on
Wednesday, Aug. 25, 2010 7:15PM EDT Last updated on Thursday,
investing  value_investing/investors  forestry  deal-making  out-of-the-box 
august 2010 by jerryking
Facing Budget Gaps, Cities Sell Parking, Airports, Zoos, Other Assets - WSJ.com
AUGUST 23, 2010 | Wall Street Journal | By IANTHE JEANNE DUGAN.

The privatization trend is being spurred by a cottage industry of consultants, lawyers and bankers. Allen & Overy, a New York law firm, dubs it "rescue investing" and recently provided investors a booklet on "jurisdictions of opportunity"—municipalities whose laws, budget woes and credit ratings make them most likely to make deals [jk: unexploited_resources ].

"More public-private partnerships for public infrastructure in the U.S. have reached commercial and financial close than during any comparable period in U.S. history," the booklet says.
airports  assets  austerity  cities  cottage_industries  cutbacks  deal-making  dealmakers  divestitures  entrepreneurial  fallen_angels  infrastructure  investors  law_firms  lawyers  municipalities  opportunities  opportunistic  parking_lots  pitches  PPP  privatization  prospectuses  rescue_investing  unexploited_resources  vulture_investing 
august 2010 by jerryking
Prepare for the deal making to commence
Nov. 24, 2009 | The Globe and Mail | ANDREW WILLIS. Send to Princess Alexander
turnarounds  Andrew_Willis  deal-making 
november 2009 by jerryking

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