The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value,New

The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value,New

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A widespread misunderstanding concerning leveraged buyouts (LBOs) is the belief that they accomplish little but the ruin of companies and the loss of employment. How else could it be? Until recently, journalists, including much of the business press, have depicted LBO specialists as generally greedy, if not sinister, forces whose activities compound the dislocations of modern American economic and social life. This kind of criticism reached a crescendo in the press and in Congress at the end of the 1980s, and Kohlberg Kravis Roberts found itself in the middle of the controversy. Based on interviews with partners of the firm and on unprecedented access to KKR's records, George P. Baker and George David Smith have written a definitive account of how KKR has approached LBOs in a book that will appeal to the specialist and general reader alike. The authors focus on KKR's founding, evolution, and innovations as ways to understand issues in modern American business. In examining KKR as a unique form of enterpriseone that subscribes to a set of alternative perspectives on business and value creationthe book bridges the gap between public perception and academic knowledge of how financial innovation impacts economic life. The firm's approach to leveraged buyouts was an important aspect of the corporate restructuring and governance reforms in the American economy from the mid1970s through 1990 (the years of what some have called the 'leveraged buyout movement'). KKR and other companies fundamentally altered the prevailing perception of the role of debt in the modern American corporation and established an alternative model for organizing and managing corporate enterprises. KKR financed the companies it acquired with high levels of debt, while linking their ownership to management. It then imposed rigorous monitoring by the board of directors over the companies in its portfolio. This combination of factors forced managers to concentrate not on growth but rather on how to achieve value through whatever means was most appropriate to the company's circumstances. The purpose of the leveraged buyout was to realize, or 'create,' value in companies by reforming their management systems. KKR's approach to restructuring the relationship between owners and managers in a highly leveraged firm rested on a basic principle: Make managers owners by making them invest a significant share of their personal wealth in the enterprises they manage, and they will have stronger incentives to act in the best interests of all shareholders.

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Warranty

We provide a 2-year limited warranty, from the date of purchase for all our products.

If you believe you have received a defective product, or are experiencing any problems with your product, please contact us.

This warranty strictly does not cover damages that arose from negligence, misuse, wear and tear, or not in accordance with product instructions (dropping the product, etc.).

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Frequently Asked Questions

  • Q: What is 'The New Financial Capitalists' about? A: The book provides an in-depth analysis of Kohlberg Kravis Roberts & Co. (KKR) and their approach to leveraged buyouts (LBOs), examining how they transformed corporate value and management practices in American businesses.
  • Q: Who are the authors of this book? A: The book is authored by George P. Baker and George David Smith, who offer insights based on interviews and access to KKR's records.
  • Q: What are the key themes discussed in the book? A: Key themes include the role of debt in corporations, the restructuring of management systems, and the impact of financial innovation on economic life in the U.S.
  • Q: What is the publication date of this book? A: The New Financial Capitalists was published on October 13, 1998.
  • Q: What type of binding does this book have? A: This book is available in hardcover binding, ensuring durability and a professional appearance.
  • Q: How many pages does the book contain? A: The book contains a total of 272 pages.
  • Q: Is this book suitable for both specialists and general readers? A: Yes, the book is designed to appeal to both specialists in finance and general readers interested in understanding corporate value creation.
  • Q: What condition is the book in? A: The item is listed as 'New', indicating it is in excellent condition and has never been used.
  • Q: Does the book include any case studies or real-world examples? A: Yes, the authors include various case studies and examples from KKR’s operations to illustrate their approach to leveraged buyouts.
  • Q: What are some of the features of this book? A: The book is a used book in good condition, providing a comprehensive overview of LBOs and their implications for corporate governance and management.