NutzWorld SportzNutz EntertainmentNutz ComputerNutz GamezNutz TinyStart InfoTiki News

The 10 crucial business books that explain why modern capitalism works the way it does now

BARBARIANS AT THE GATE (1989): An epic thriller about ’80s excess, a time when debt financing replaced manufacturing as capitalism’s main focus.

BARBARIANS AT THE GATE (1989): An epic thriller about '80s excess, a time when debt financing replaced manufacturing as capitalism's main focus.James Garner as the CEO of RJR Nabisco in the movie version of “Barbarians at the Gate.”Columbia Pictures

“Barbarians” is regarded by many as the greatest business book ever written. In 1988, the flamboyant CEO of RJR Nabisco, F. Ross Johnson, decided he could buy his company outright, take it private, and then sell it again later at a profit. The deal would use a “leveraged buyout” — a transaction that would let Johnson use junk bonds (risky corporate debt)  to pay for the deal. He offered $17 billion, or $75 a share, for a stock that had been trading at $55.

The flaw in Johnson’s plan was immediately obvious to Wall Street: Once the board agreed to consider the deal it was required to consider competing bids too — and they flooded in. Anarchy ensued. Bryan Burrough and John Helyar had sources inside every office, enabling them to eavesdrop on every conversation, every plot, every betrayal.

Ultimately, the LBO specialist firm Kohlberg, Kravis, Roberts triumphed in a frenzied auction, with a $25 billion ($109 per share) offer — the largest corporate takeover in history.

KKR then stripped the company of its assets as it struggled to pay the debt that financed

Article source: http://www.businessinsider.com/best-ever-classic-non-fiction-business-books-2017-5

About Michael
%d bloggers like this: