Barbarians at the Gate: The Untold Story of Corporate Takeover and Greed
Nov 01, 2023, 12:52 AM
Chapter 1:Summary of Barbarians At The Gate book
"Barbarians At The Gate" by Bryan Burrough is a detailed account of the leveraged buyout (LBO) of RJR Nabisco, one of the largest American conglomerates at the time, in 1988. The book highlights the intense competition and greed that characterized the buyout process, ultimately resulting in the largest corporate takeover in history.
The narrative revolves around the key players involved in the buyout, including Ross Johnson, the charismatic CEO of RJR Nabisco, Henry Kravis and George Roberts, the founders of private equity firm Kohlberg Kravis Roberts & Co. (KKR), and a range of investment bankers and lawyers. Burrough chronicles their motivations, strategies, and the high-stakes negotiations that took place behind closed doors.
The book sheds light on the ruthless tactics employed by both Johnson and KKR to gain control of RJR Nabisco. Johnson, driven by his desire to secure his financial legacy and maintain his lavish lifestyle, engages in questionable financial practices to inflate the company's stock price. KKR, on the other hand, employs aggressive bidding, leverages massive amounts of debt, and effectively uses media manipulation to sway public perception.
Burrough also explores the larger economic and social implications of the RJR Nabisco buyout. The deal symbolized the excesses of the 1980s Wall Street culture, characterized by greed, excessive borrowing, and ruthless pursuit of profit. It highlighted the power struggles between corporate executives, private equity firms, and shareholders in shaping the fate of corporations.
Overall, "Barbarians At The Gate" provides an in-depth and gripping account of a seminal moment in corporate history. It reveals the complex dynamics and personal motivations that drove the RJR Nabisco buyout, and offers insights into the broader financial landscape of the 1980s.
Chapter 2:the meaning of Barbarians At The Gate book
"Barbarians at the Gate" is a non-fiction book written by Bryan Burrough and John Helyar, published in 1989. It recounts the leveraged buyout (LBO) of the company RJR Nabisco, which took place in the 1980s. The book examines the contentious takeover battle between the management of RJR Nabisco and competing bidders, including private equity firms Kohlberg Kravis Roberts (KKR) and Co. and Forstmann Little.
The title "Barbarians at the Gate" suggests the outsiders (KKR and Forstmann Little) who are seen as the "barbarians" attempting to take over the "gate," symbolizing control over RJR Nabisco. The book explores the high-stakes world of corporate takeovers, the strategies employed by the different players, and the financial maneuvers involved in such deals.
The story is a captivating and detailed account of the intense bidding war, the personal rivalries, and the financial intrigue that characterized the RJR Nabisco takeover. It delves into the motivations of the various parties involved, the impact on the employees and shareholders of the company, and the broader implications for the world of finance.
Overall, "Barbarians at the Gate" provides an insider's perspective on one of the most famous and significant leveraged buyouts in corporate history. It sheds light on the personalities, tactics, and complexities of the competitive corporate landscape, making it a popular book for those interested in finance, business, and the dynamics of power within large organizations.
Chapter 3:Barbarians At The Gate book chapters
Chapter 1: The Billion Dollar Game
This chapter introduces the key players in the takeover drama - F. Ross Johnson, CEO of RJR Nabisco, Henry Kravis and Jerome Kohlberg, partners at Kohlberg Kravis Roberts & Co. (KKR), and Peter J. Solomon, a successful investment banker.
Chapter 2: The Fateful Weekend
The chapter details the events leading up to Labor Day weekend, 1988, when Ross Johnson decides to execute an LBO of RJR Nabisco. It also explores the concealment of the LBO plan from the RJR Nabisco board.
Chapter 3: The Ultimatum
This chapter outlines Johnson's proposal to the RJR Nabisco board, offering to buy the company for $75 per share. It also reveals the skepticism and resistance within the board to the LBO.
Chapter 4: The Battle Begins
The chapter presents the hostile bid from rival firm Kohlberg Kravis Roberts (KKR) and narrates the intense bidding war that follows between KKR and Johnson's management team.
Chapter 5: Big Is Better
This chapter dives into the history and culture of RJR Nabisco, highlighting the company's rise to power and the extravagant lifestyles of its executives.
Chapter 6: The Multiple Man
The chapter delves into the character and personality of Ross Johnson, exploring his upbringing, career, and motivations that drive him to pursue the LBO of RJR Nabisco.
Chapter 7: The Price of Victory
This chapter reveals the final deal reached by KKR and its competitors to acquire RJR Nabisco for $25 billion, making it the largest LBO in history at the time.
Chapter 8: The Legal Battle Begins
The chapter focuses on the legal challenges faced by KKR after their successful acquisition of RJR Nabisco, including lawsuits from disgruntled shareholders and investigations by the SEC.
Chapter 9: Two Brutal Months
This chapter explores the internal conflicts and power struggles within RJR Nabisco following the acquisition, as well as the challenges faced by new chairman Henry Kravis.
Chapter 10: Cashing In
The chapter examines the enormous financial rewards reaped by Ross Johnson, other executives, and Wall Street firms involved in the RJR Nabisco deal.
Chapter 11: The Resurrection
The chapter concludes with the aftermath of the RJR Nabisco acquisition, as the company faces financial hardships, downsizing, and attempts to rebuild itself under new leadership.
Chapter 4: Quotes of Barbarians At The Gate book
1. "Greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit." - Gordon Gekko
2. "The two most beautiful words in the English language are 'check enclosed.'" - Henry Kravis
3. "The barbarians were not at the gate looking in. The barbarians were within the gates, and they were us." - Bryan Burrough
4. "The deal became everything. It always does." - Bryan Burrough
5. "People at the top weren't really worried about the money they already had; they were worried about everybody else's money." - Bryan Burrough
6. "The markets were descending into chaos, and through it all, the barbarians were making out like bandits." - Bryan Burrough
7. "It was a world where money was the sole measure of success, and there was no such thing as having too much." - Bryan Burrough
8. "If this was what capitalism had become by the 1980s, it wasn't just capitalists like Kravis and Johnson who should be worried, it was America itself." - Bryan Burrough
9. "The financial world, the whole economy, was being transformed into a vast roulette wheel, and everyday people were suddenly being asked to bet their savings on it." - Bryan Burrough
10. "In the end, it wasn't just the barbarians who had won, it was the entire system. Corporate America would never be the same again." - Bryan Burrough
"Barbarians At The Gate" by Bryan Burrough is a detailed account of the leveraged buyout (LBO) of RJR Nabisco, one of the largest American conglomerates at the time, in 1988. The book highlights the intense competition and greed that characterized the buyout process, ultimately resulting in the largest corporate takeover in history.
The narrative revolves around the key players involved in the buyout, including Ross Johnson, the charismatic CEO of RJR Nabisco, Henry Kravis and George Roberts, the founders of private equity firm Kohlberg Kravis Roberts & Co. (KKR), and a range of investment bankers and lawyers. Burrough chronicles their motivations, strategies, and the high-stakes negotiations that took place behind closed doors.
The book sheds light on the ruthless tactics employed by both Johnson and KKR to gain control of RJR Nabisco. Johnson, driven by his desire to secure his financial legacy and maintain his lavish lifestyle, engages in questionable financial practices to inflate the company's stock price. KKR, on the other hand, employs aggressive bidding, leverages massive amounts of debt, and effectively uses media manipulation to sway public perception.
Burrough also explores the larger economic and social implications of the RJR Nabisco buyout. The deal symbolized the excesses of the 1980s Wall Street culture, characterized by greed, excessive borrowing, and ruthless pursuit of profit. It highlighted the power struggles between corporate executives, private equity firms, and shareholders in shaping the fate of corporations.
Overall, "Barbarians At The Gate" provides an in-depth and gripping account of a seminal moment in corporate history. It reveals the complex dynamics and personal motivations that drove the RJR Nabisco buyout, and offers insights into the broader financial landscape of the 1980s.
Chapter 2:the meaning of Barbarians At The Gate book
"Barbarians at the Gate" is a non-fiction book written by Bryan Burrough and John Helyar, published in 1989. It recounts the leveraged buyout (LBO) of the company RJR Nabisco, which took place in the 1980s. The book examines the contentious takeover battle between the management of RJR Nabisco and competing bidders, including private equity firms Kohlberg Kravis Roberts (KKR) and Co. and Forstmann Little.
The title "Barbarians at the Gate" suggests the outsiders (KKR and Forstmann Little) who are seen as the "barbarians" attempting to take over the "gate," symbolizing control over RJR Nabisco. The book explores the high-stakes world of corporate takeovers, the strategies employed by the different players, and the financial maneuvers involved in such deals.
The story is a captivating and detailed account of the intense bidding war, the personal rivalries, and the financial intrigue that characterized the RJR Nabisco takeover. It delves into the motivations of the various parties involved, the impact on the employees and shareholders of the company, and the broader implications for the world of finance.
Overall, "Barbarians at the Gate" provides an insider's perspective on one of the most famous and significant leveraged buyouts in corporate history. It sheds light on the personalities, tactics, and complexities of the competitive corporate landscape, making it a popular book for those interested in finance, business, and the dynamics of power within large organizations.
Chapter 3:Barbarians At The Gate book chapters
Chapter 1: The Billion Dollar Game
This chapter introduces the key players in the takeover drama - F. Ross Johnson, CEO of RJR Nabisco, Henry Kravis and Jerome Kohlberg, partners at Kohlberg Kravis Roberts & Co. (KKR), and Peter J. Solomon, a successful investment banker.
Chapter 2: The Fateful Weekend
The chapter details the events leading up to Labor Day weekend, 1988, when Ross Johnson decides to execute an LBO of RJR Nabisco. It also explores the concealment of the LBO plan from the RJR Nabisco board.
Chapter 3: The Ultimatum
This chapter outlines Johnson's proposal to the RJR Nabisco board, offering to buy the company for $75 per share. It also reveals the skepticism and resistance within the board to the LBO.
Chapter 4: The Battle Begins
The chapter presents the hostile bid from rival firm Kohlberg Kravis Roberts (KKR) and narrates the intense bidding war that follows between KKR and Johnson's management team.
Chapter 5: Big Is Better
This chapter dives into the history and culture of RJR Nabisco, highlighting the company's rise to power and the extravagant lifestyles of its executives.
Chapter 6: The Multiple Man
The chapter delves into the character and personality of Ross Johnson, exploring his upbringing, career, and motivations that drive him to pursue the LBO of RJR Nabisco.
Chapter 7: The Price of Victory
This chapter reveals the final deal reached by KKR and its competitors to acquire RJR Nabisco for $25 billion, making it the largest LBO in history at the time.
Chapter 8: The Legal Battle Begins
The chapter focuses on the legal challenges faced by KKR after their successful acquisition of RJR Nabisco, including lawsuits from disgruntled shareholders and investigations by the SEC.
Chapter 9: Two Brutal Months
This chapter explores the internal conflicts and power struggles within RJR Nabisco following the acquisition, as well as the challenges faced by new chairman Henry Kravis.
Chapter 10: Cashing In
The chapter examines the enormous financial rewards reaped by Ross Johnson, other executives, and Wall Street firms involved in the RJR Nabisco deal.
Chapter 11: The Resurrection
The chapter concludes with the aftermath of the RJR Nabisco acquisition, as the company faces financial hardships, downsizing, and attempts to rebuild itself under new leadership.
Chapter 4: Quotes of Barbarians At The Gate book
1. "Greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit." - Gordon Gekko
2. "The two most beautiful words in the English language are 'check enclosed.'" - Henry Kravis
3. "The barbarians were not at the gate looking in. The barbarians were within the gates, and they were us." - Bryan Burrough
4. "The deal became everything. It always does." - Bryan Burrough
5. "People at the top weren't really worried about the money they already had; they were worried about everybody else's money." - Bryan Burrough
6. "The markets were descending into chaos, and through it all, the barbarians were making out like bandits." - Bryan Burrough
7. "It was a world where money was the sole measure of success, and there was no such thing as having too much." - Bryan Burrough
8. "If this was what capitalism had become by the 1980s, it wasn't just capitalists like Kravis and Johnson who should be worried, it was America itself." - Bryan Burrough
9. "The financial world, the whole economy, was being transformed into a vast roulette wheel, and everyday people were suddenly being asked to bet their savings on it." - Bryan Burrough
10. "In the end, it wasn't just the barbarians who had won, it was the entire system. Corporate America would never be the same again." - Bryan Burrough