Barbarians at the Gate and Mastering Private Equity Summaries

Barbarians at the Gate and Mastering Private Equity Summaries
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Barbarians at the Gate and Mastering Private Equity Summaries
Barbarians at the Gate exposes the tactics greedy business people use to take controlling interests of major corporations. It explains the financial segments involved in leveraged buyouts as well. Below is a full summary of the text in bullet points:
* Burrough and Helyar, Wall Street Journal's investigative reporters, narrate F. Ross Johnson's reach for power within RJR Nabisco.
* RJR Nabisco, the massive food and tobacco corporation, and the nineteenth largest industrial corporation at the time, experienced a market crash in 1987.
* Gradually, the company's constant low stock price left it extremely undervalued and exposed to takeovers. 
* The management unsuccessfully applied various initiatives to yield RJR Nabisco's fair valuation.
* George R. Roberts and his cousin Henry Kravis were against johnson's bid for RJR Nabisco, and so they supported the pioneering of the leveraged buyout (LBO).
* Kravis felt betrayed upon the realization that Johnson wanted to enlist American Express.
* Leveraging up RJR Nabisco meant cutbacks, and Johnson could not entertain anything hindering his ability to run the firm lavishly.
* Ross Johnson, the RJR Nabisco president, and CEO decides to privately buy the public company, a move that attracts other firms to tender offers.
* The numerous bids on RJR Nabisco made it a Leveraged Buyout (LBO), a type of takeover that leads to more debt for the winning...