The World's Best Book Summaries
What is an LBO? Are LBOs considered hostile in the business industry? A leveraged buyout (LBO) is when a group of executives makes a company private by buying all of the company’s stock. There’s still much debate on whether a leveraged buy-out is considered a hostile takeover of a company. Read more about LBOs, according to Barbarians at the Gate by Bryan Burrough and John Helyar.
What was the Black Monday stock market crash? How did the market suffer from this day? In Liar’s Poker, Michael Lewis writes about the day the financial world felt a shock unmatched since the Great Depression. On Monday, October 19, 1987, the global stock market crashed, wiping out trillions of dollars in investments. Learn more about Black Monday and how the investment bank Salomon Brothers and Lewis attempted to recover from the crash.
Do you set goals for your team members? Do you help them set and reach their own objectives? Regardless of your managerial level, you have a duty to help your team set and reach their own goals as well as contribute to the overall objectives of your organization. In When They Win, You Win, Russ Laraway outlines four tiers of managerial goals and shares two ways to measure your effectiveness. Keep reading to learn how you can help your team set and reach goals that benefit the organization as a whole.
Who is F. Ross Johnson? Why did Johnson agree to the buyout of RJR Nabisco? F. Ross Johnson was the CEO of RJR Nabisco, a tobacco and food product company, in the 1980s. Barbarians at the Gate by Bryan Burrough and John Helyar discusses the background of the RJR Nabisco CEO and why he initiated the leveraged buyout (LBO) of the company. Read on to get the whole picture and understand what made the RJR Nabisco buyout special.
Why was Ross Johnson resistant to a leveraged buyout of RJR Nabisco? Why did he eventually cave in? In the 1980s, many LBO consultants were pursuing the idea of buying out RJR Nabisco, but CEO Ross Johnson was hesitant. Eventually, he agreed to try an LBO, which would later become the biggest in history. Learn more about RJR Nabisco’s LBO below.
Do people usually bid on companies in LBOs? How many financial companies bid on RJR Nabisco? According to Barbarians at the Gate by Bryan Burrough and John Helyar, competitive bidding is unusual in LBOs. But because Ross Johnson pitched the idea of an LBO to his board before preparation, it become a bidding contest between different competitors. Continue reading to learn more about the bidding contest for RJR Nabisco.
Do you dread canceling subscriptions because the process can be so convoluted? Did you know companies do this on purpose? The global subscription services market is expected to double in size by 2026. Much of its success comes from making it difficult for people to cancel their subscriptions. The US Federal Trade Commission has proposed a “Click to Cancel” rule that would crack down on deceptive company practices. We’ll take a look at the Click to Cancel rule below.
How did Kohlberg Kravis Roberts & Co. come to be the highest bidder in the RJR Nabisco LBO? How many competitors did KKR have to beat? Although CEO Ross Johnson didn’t think many financial companies were interested in buying RJR Nabisco, many stepped up. According to Bryan Burrough and John Helyar’s book Barbarians at the Gate, KKR was the highest bidder in the contest for RJR Nabisco. Keep reading to learn about all the companies who bid for RJR Nabisco, including KKR.
What’s a best alternative to a negotiated agreement? Why should you calculate your and your counterpart’s BATNA and reservation value? Negotiation Genius by Deepak Malhotra and Max H. Bazerman suggests you prepare two main things before entering a negotiation. These are your and your counterpart’s best alternative to a negotiated agreement (BATNA) and reservation value (RV). Check out how to easily calculate both below.
What was the largest LBO in history? What did Ross Johnson do after selling RJR Nabisco? In 1986, the financial company Kravis bought RJR Nabisco for an astounding $25 billion. This makes the acquisition the largest LBO to date and sent CEO Ross Johnson into full retirement. Continue reading to learn more about Kravis’s final offer for RJR Nabisco.