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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.
How hard was it being a bond trader in the 1980s? How did Salomon Brothers take over Wall Street? Salomon Brothers investment bank was founded in 1910 by Arthur, Herbert, and Percy Salomon. It wasn’t until the 1980s that the firm found its niche within the growing bond market. Keep reading to learn how the Salomon Brothers controlled the bond market, according to Liar’s Poker by Michael Lewis.
What is Jim Simons’s trading strategy? Why did his strategy take off in the 1990s and 2000s? Jim Simons’s trading strategy was so unique that it made him one of the best money managers in modern financial history. It focused on buying or selling currencies at the right time based on the model’s predictions of when they were most likely to rise or fall in value. Let’s look at how the Renaissance strategy dominated the Quant Era of Wall Street.
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 is Jim Simons’s educational background? Where did Simons study before he became a billionaire money manager? Before he used mathematical models to dominate the market and become a billionaire, Jim Simons was just a student interested in math. The Man Who Solved the Market by Gregory Zuckerman details his educational background before his stellar financial career. Find out more about Jim Simons’s education and how he discovered investing.
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.
What is The Man Who Solved the Market by Gregory Zuckerman about? How did Jim Simons impact the financial market? Gregory Zuckerman’s book The Man Who Solved the Market is the story of Jim Simons, a mathematician who became a billionaire hedge fund manager just by recognizing predictable patterns in the market. His work has made him one of the greatest investors on Wall Street. Read below for a brief The Man Who Solved the Market book overview.
How can you keep cognitive biases from ruining a negotiation? How should you handle it when your counterpart lies to you? Is it possible to negotiate from a weak position and come out on top? In Negotiation Genius, Deepak Malhotra and Max H. Bazerman look into some common obstacles during negotiations that can impede your ability to understand and communicate with your counterpart. These obstacles include cognitive bias, deception, and a weak position. Take a look at these negotiation challenges, and learn how to overcome them.
Do you want to help people who need it? How can you be selfless and kind to others? Humans are naturally selfish beings due to our evolutionary need to survive, but there are ways to grow out of this selfishness. Whether it’s performing random acts of kindness or actively listening, unleashing your altruistic side is a great way to give back to others while expecting nothing in return. Keep reading to learn how to be selfless and make somebody’s day.