recentpopularlog in

jerryking : dealmakers   54

Stephen Schwarzman: ‘I like to do things that are beautiful’
September 20, 2019 | Financial Times | by Lionel Barber.

Schwarzman’s fortune (net worth about $18bn) has bought him power and influence. He’s graduated from being a mega dealmaker to philanthropist, back channel in US-China relations and “Trump whisperer”. I want to explore these multiple roles, but also pin down why the man who has built one of the most successful financial businesses on the planet has never quite received the credit he believes he deserves......Blackstone started as a boutique advisory firm, with the goal of making enough money to start its own private equity fund. Private equity has attracted controversy because of alleged asset-stripping: buying companies, loading them with debt (“leverage”) and selling them off at a handsome profit, with favourable tax treatment.

Schwarzman casts himself as a long-term investor, not a scavenger in sheep’s clothing. He recounts with gusto the megadeals and the risk-taking involved in picking the right time to buy and sell assets, ranging from US Steel’s railroad network to the Waldorf hotel.

His skill is market timing. Blackstone has expanded into real estate and hedge funds and other “alternative assets”, with $545bn under management today. Blackstone funds are also the largest owner of real estate in the world. The firm’s rise epitomises the “buy side” revolution that favours asset managers at the expense of traditional banks trading liquid securities.

Schwarzman has written a book, which is part memoir, part Blackstone management primer called What It Takes: Lessons in the Pursuit of Excellence. (A better title would be Whatever It Takes, I suggest.) ......Blackstone is a meritocracy, he says, where two iron rules apply: no internal politics and do not lose money. “I go from the premise that anybody of talent does not want necessarily to be a private in an army. The lowest they want is to be a lieutenant colonel and preferably they’d all like to be generals.”......We turn to Schwarzman’s generous philanthropy. In recent years, he has donated $100m to the New York Public Library, $150m to Yale, £150m to Oxford university, $350m to MIT. He’s also set up the Schwarzman scholars, a one-year masters programme on global affairs for top international students to study at Tsinghua University in Beijing.
alternative_investments  Blackstone  books  dealmakers  investors  market_timing  philanthropy  private_equity  Stephen_Schwarzman  U.S.-China_relations 
september 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
JAB chair Bart Becht quits in split with partners
January 14, 2019 | Financial Times | Leila Abboud in Paris and Arash Massoudi.

Bart Becht's departure is the first outward display of tensions within JAB, created to manage the wealth of Germany’s billionaire Reimann family. The chairman of JAB Holdings, the acquisition-hungry owner of Pret A Manger and Keurig Dr Pepper, has quit after a five-year $50bn takeover spree led to a split with his two partners over the scale of the investment group’s dealmaking.

According to two people with direct knowledge of his decision, Bart Becht, a hard-charging 62-year-old consumer industry executive, stepped down after failing to convince JAB to scale back its takeover ambitions to focus on improving operations at its sprawling portfolio of companies.....The once-obscure investment vehicle has vaulted itself into the top tier of consumer products groups through acquisitions of high-profile US brands like Krispy Kreme, Peet’s Coffee and Covergirl owner Coty, competing directly with industry giants including Nestlé and Coca-Cola in coffee and L’Oreal in make-up......One person who has worked closely with JAB described Mr Becht’s decision as “undoubtedly a surprise”, especially since the trio of executives had only recently been raising money from outside investors and pitching themselves as long-term investors.

JAB operates in a similar way to a private equity investor, but with much longer time horizons. It is often willing to own portfolio companies for decades, often engineering an expansion via acquisitions.....The fundraising also coincided with a strategy shift as JAB exited investments in luxury and fashion to focus on what it calls premium food and beverage, casual dining, and coffee.
CPG  dealmakers  departures  exits  family_office  family-owned_businesses  hard-charging  investors  JAB  Keurig  private_equity  portfolio_management  time_horizons 
january 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
Constellation Software may have to revisit its retreat into silence - The Globe and Mail
DAVID MILSTEAD
PUBLISHED 2 DAYS AGO
UPDATED 2 DAYS AGOFOR SUBSCRIBERS

So far this year, less has been more for Constellation Software Inc.

Less communication, as chief executive Mark Leonard has decided to abandon his regular shareholders' letters, and his company has ended quarterly earnings conference calls and announced it will no longer reveal certain performance metrics.
dealmakers  software  mergers_&_acquisitions  consolidation  Ivey  alumni  Constellation 
august 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
A Rainmaker Seeks to Grow His Firm at a Time of Big Media and Tech Deals - The New York Times
By MICHAEL J. de la MERCEDDEC. 17, 2017

Continue reading the main storyShare This Page
Share
Tweet
Email
More
rainmakers  John_Malone  moguls  dealmakers  investment_banking  boutiques  Wall_Street 
december 2017 by jerryking
A Reading List of Tell-Alls, Strategic Plans and Cautionary Tales in Finance - The New York Times
JULY 4, 2016 | DEALBOOK | Andrew Ross Sorkin

(1) “Chaos Monkeys: Obscene Fortune and Random Failure in Silicon Valley,” by a former Facebook executive, Antonio García Martinez.
(2) “The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse” by Mohamed A. El-Erian, chief economic adviser at Allianz and chairman of President Obama’s Global Development Council.
(3) “Makers and Takers: The Rise of Finance and the Fall of American Business” Rana Foroohar
(4) “Originals: How Non-Conformists Move the World” Adam Grant
(5) Bloodsport: When Ruthless Dealmakers, Shrewd Ideologues, and Brawling Lawyers Toppled the Corporate Establishment” by Robert Teitelman,
(6) “Dear Chairman: Boardroom Battles and the Rise of Shareholder Activism,” by Jeff Gramm, owner and manager of the Bandera Partners hedge fund and an adjunct professor at Columbia Business School.
(7) “Brazillionaires: Wealth, Power, Decadence, and Hope in an American Country” by the journalist Alex Cuadros.
(8) a biography of Alan Greenspan titled, “The Man Who Knew: The Life and Times of Alan Greenspan.” It is by the journalist Sebastian Mallaby, an adroit writer who also published a brilliant book on hedge funds several years ago, called “More Money than God: Hedge Funds and the Making of a New Elite.”
(9) “To Pixar and Beyond: My Unlikely Journey with Steve Jobs to Make Entertainment History” by Lawrence Levy, the former chief financial officer of Pixar.
Rana_Foroohar  books  booklists  summertime  Andrew_Sorkin  Pixar  Mohamed_El-Erian  hedge_funds  central_banks  finance  dealmakers  Silicon_Valley  Brazil  biographies  Adam_Grant  cautionary_tales 
july 2016 by jerryking
Thoughtful Italian dealmaker who plays the long game
| Financial Times |

Stefano Pessina has struck dozens of deals during his 40-year career. But unlike a gung-ho corporate raider, the 74-year-old chief executive of Walgreens Boots Alliance has played the long game, getting to know potential partners and targets, and waiting for the right moment to strike. This week was no different. Walgreens announced the purchase of Rite Aid for $17.2bn, alighting on the chain in a period of consolidation in the US pharmacy industry.
dealmakers  Italian  pharmaceutical_industry  retailers  CEOs  consolidation  pharmacies  long-term  long-range 
november 2015 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
Ari Emanuel's WME-IMG Merger: The Possible Financial Troubles
March 2015 | | Vanity Fair | BY WILLIAM D. COHAN.

“Take advantage of each day that's given to you, and do something to move the needle on your business, even if it's just an inch. You've heard it before, but life is not a dress rehearsal. Don't waste your time (or mine).”....In 2009, Emanuel decided to take another big risk. “Nobody fucks up like I do,” he once wrote, “but you'll never succeed unless you take big risks. Big ones.”......“There's nobody more important when it comes to television packaging than Ari and Rick Rosen [WME's television chief],” says entertainment mogul David Geffen. “There's nobody who does it better. For instance, Steven Spielberg was at CAA for decades, and they did nothing for him in television, and he goes with Ari, and he has had seven or eight shows on the air. That's about accomplishment, not about bullshit.”........Over the next decade Forstmann transformed IMG into an international production-and-packaging powerhouse. The expanding business cut profitable deals with more than 200 American college and university sports teams, as well as with Indian Premier League cricket, Wimbledon, the Australian and U.S. Open tennis tournaments, tennis tournaments in Spain and Malaysia, and Barclays Premier League soccer. It ran Fashion Week in New York, Milan, and London, and in China it formed an exclusive joint venture with the national television network to create sports programming—all this in addition to representing such sports stars as Novak Djokovic, Maria Sharapova, and Venus Williams. It also signed up an array of fashion designers and models, including Michael Kors, Diane von Furstenberg, Gisele Bündchen, and Kate Moss.
Ari_Emanuel  mybestlife  talent_management  mergers_&_acquisitions  entertainment_industry  chutzpah  Hollywood  overachievers  Ted_Forstmann  talent_representation  dealmakers  packaging  Silver_Lake  affirmations  idea_generation  creating_valuable_content  hard_work  performance  strivers  sports  fashion  superstars  risk-taking  William_Cohan  James_Baldwin  personal_accomplishments 
march 2015 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
RACHELLE YOUNGLAI - MINING REPORTER
The Globe and Mail
Published Friday, Dec. 06 2013

John Thorton is a man who “loves flawless execution” and prefers to work behind the scenes.

When Goldman won the contract to take some of China’s government-controlled telecom services public in 1998, it stemmed from Mr. Thornton’s work.

In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone and the Chinese banker took Mr. Thornton’s request to Wang Qishan, then the head of China Construction Bank (one of China’s four biggest banks) and a protege of Mr. Zhu. Mr. Wang then spoke to Mr. Zhu and Goldman made its foray into China.

Mr. Thornton, Mr. Evans and former U.S. treasury secretary and Goldman chief executive Hank Paulson met Mr. Zhu in Beijing and Goldman got the deal.
Hank_Paulson  mining  Barrick  Goldman_Sachs  boards_&_directors_&_governance  China  relationships  dealmakers  optics  protégés 
december 2014 by jerryking
An expert at the quick flip cooking up a whopper deal - FT.com
August 29, 2014 | FT | By Neil Munshi.

It did not take long for Mr Schwartz’s confidence to bear fruit. In 2013, when he was only 32 years old, he was put in charge of Burger King by 3G Capital of Brazil, its private equity owners. This week, only 16 days after turning 34, Mr Schwartz unveiled one of the biggest deals in fast-food history – Burger King’s $11.4bn acquisition of Tim Hortons, the Canadian coffee-and-doughnut chain...As might be expected for a young man playing in a well-established game, Mr Schwartz’s forte at Burger King has been financial engineering. A native of Long Island, he focused on finance at university before honing his number-crunching skills during stints in the mergers-and-acquisition arm of Credit Suisse First Boston and Altair Capital Management, a Connecticut hedge fund. He joined 3G as an analyst in 2005 and made partner three years later. In 2010, he led 3G’s $4bn leveraged buyout of Burger King and became its chief financial officer. Two years later, he helped 3G sell a roughly 30 per cent stake in the second-largest US burger chain for about $1.5bn. He became chief executive last year.
Burger_King  CEOs  Cornell  alumni  dealmakers  Tim_Hortons  M&A  private_equity  Daniel_Schwartz  3G_Capital  financial_engineering 
august 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
CPPIB’s Mark Wiseman: A creature of habit with a taste for the new - The Globe and Mail
TARA PERKINS

TORONTO — The Globe and Mail

Published Friday, Feb. 01 2013, 7:40 PM EST

Last updated Saturday, Feb. 02 2013
CPPIB  Mark_Wiseman  dealmakers  private_equity  financiers 
february 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
Obama the Dealmaker - NYTimes.com
By DAVID BROOKS
Published: November 12, 2012
deal-making  dealmakers  Obama 
november 2012 by jerryking
Top Lawyer Fights Back After a Skiing Accident - WSJ.com
August 31, 2012 | WSJ | By RYAN DEZEMBER.

Ordeal to Deals: A Lawyer Returns
Deal Maker Back on Top 5 Years After Accident
dealmakers  lawyers  women  inspiration 
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
A family’s candid friend - FT.com
December 8 | FT | By Edward Luce. A look at uber lawyer Jim Baker
Iraq  éminence_grise  lawyers  dealmakers  Edward_Luce 
august 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
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
The fight of Richard Rainwater's life - Fortune Management
November 7, 2011 | Fortune | By Peter Elkind and Patricia Sellers, with Doris Burke.
The renowned dealmaker built a fortune using little besides his wits. Now he's funding a crash program to stop the disease that's destroying his mind.

Rainwater's deals were just as eclectic and creative. But a pattern quickly emerged. Rainwater always looked for a big event. A blowup in energy prices. A revolution in health care reimbursements. A real estate bubble. Then he looked for a powerful way to exploit the upheaval -- not just to bet the trend but to turbocharge the bet. To snatch up drilling assets at panic-sale prices and hand them to the oil patch's most astute operator. To build a chain of super-efficient hospitals. To buy premium downtown office space (the quickest to bounce back) on the cheap after a market crash.
Bass_brothers  big_bets  bubbles  creativity  cunning  dealmakers  discontinuities  event-driven  events  leverage  Richard_Rainwater  turbocharge 
november 2011 by jerryking
For Deals, Wall Street Goes East - NYTimes.com
September 28, 2011, 6:48 pm Mergers & Acquisitions | DealBook Column
For Deals, Wall Street Goes East
By ANDREW ROSS SORKIN

“The interest among Western institutional investors to getting exposure to China, Brazil and India is clear. It’s a big mind shift,” said Sarah Alexander, president of the Emerging Markets Private Equity Association. And she added, they’ve been looking farther afield. “You’ve got Indonesia on the map, Colombia, Peru.”
Andrew_Sorkin  Carlyle_Group  Wall_Street  private_equity  institutional_investors  emerging_markets  globalization  David_Rubenstein  dealmakers  Blackstone  frontier_markets 
september 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
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
BTG Pactual Profits on Brazil's Growth - WSJ.com
MARCH 29, 2010 | Wall Street Journal | By JOHN LYONS. BTG
Pactual Banks on Growth. It's already one of the top investment banks in
Brazil, but its ambitions go far beyond that.
Brazil  investment_banking  dealmakers 
march 2010 by jerryking
INDUSTRIAL STRATEGY Turning Managers Into Takeover Artists
April 6, 2007 | Wall Street Journal Page A1 | By ILAN BRAT

How Conglomerate ITW Mints New Deal Makers
To Fuel Its Expansion
mergers_&_acquisitions  managers  inhouse  DIY  M&A  filetype:pdf  media:document  dealmakers 
june 2009 by jerryking

Copy this bookmark:





to read