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Summary: educational but rediculously one-sided
Review: A very education and interesting book. You will definitely learn about the LBO market.Don't expect to read anything negative about KKR. Of course, its nowhere near anything as self-gratifying as Eisner or Bloomberg's books. All in all, a good book.
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Summary: Buy this book
Review: Although the text is written in a nearly academic tone which sometimes gets boring it contains the wealth of factual informatiion not available anywhere else. Full of details on deal structuring.
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Summary: Excellent!
Review: As a Wall Street investment banker, I found this to be an excellent look inside the fascinating world of LBO firms and investment banks. (Note: For an insider's view of the financial world, I would also recommend the "Vault Reports Guide to the Top Investment Banking Firms.")
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Summary: The New Financial Capitalists
Review: Baker (Harvard Business School) and Smith (New York Univ.) provide a well-documented history of Kohlberg Kravis Roberts (KKR) and its development of the leveraged buyout (LBO). During the period 1976-93, KKR acquired more than 50 firms with an equity investment of only $10.9 billion. As of 1998, these equity investments were worth $40 billion (an annual return exceeding 28 percent). The authors examine KKR's strategy of identifying undervalued, poorly managed firms with potential to increase cash flow. Each LBO was financed with 80 to 90 percent debt, and equity was provided by a partnership organized by KKR. The LBO managers were required to have a large proportion of their net worth in the equity. After the acquisition, KKR's strategy was to cut costs and increase productivity, quickly pay down the debt, and sell the firm to unlock the equity investment. The large debt service inflicted discipline while management's investment created incentives. By linking managerial and ownership interests, Baker and Smith argue that KKR improved corporate governance and contributed to increases in corporate profits and productivity. This volume is an excellent addition to the literature on mergers, business history, and corporate strategy. Upper-division undergraduate through professional collections as well as large public libraries.
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Summary: KKR lovefest
Review: BAker and Smith have a love affair with KKR. It's now wonder after reading this book. This book is easy to follow for beginners and rewarding to more seasoned LBO professionals. Baker does well to highlight the drivers of these dealmakers and their thought process without muddling it down with toomuch technical analysis.
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Summary: KKR lovefest
Review: BAker and Smith have a love affair with KKR. It's now wonder after reading this book. This book is easy to follow for beginners and rewarding to more seasoned LBO professionals. Baker does well to highlight the drivers of these dealmakers and their thought process without muddling it down with toomuch technical analysis.
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Summary: More than simply a story about KKR...
Review: Baker and Smith have accomplished two objectives in their short book. On the surface, they have expertly captured the key elements in the development of KKR as the frontrunner of the LBO firm. However, on a deeper level, they have also captured many of the elements that managers and entrepreneurs should consider when running or starting a firm. In this regard, the Preface and Chapter Five are worth the price of admission. For anyone interested in the evolution and history of modern American finance, read this book.
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Summary: Academics report the facts in a readable manner
Review: I bought this book to learn more about how to acquire and manage highly-leveraged companies. The authors did an excellent job of reporting the successes and failures of KKR, and the details behind them. I learned much that I know will be useful in my acquisitions.
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Summary: One year later ...
Review: I finished this book a year ago, and have referred to it numerous times since. That speaks volumes about both the authors and the subject matter. Chapter two (Recasting the Role of Debt) is by itself worth the price of admission. You will never again see corporate finance in the same light. The New Financial Capitalists is a wonderful addition to the financial layperson's library.
Rating:
Summary: One year later ...
Review: I finished this book a year ago, and have referred to it numerous times since. That speaks volumes about both the authors and the subject matter. Chapter two (Recasting the Role of Debt) is by itself worth the price of admission. You will never again see corporate finance in the same light. The New Financial Capitalists is a wonderful addition to the financial layperson's library.
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