Private Equity acquirers often purchase under-performing businesses and then cut costs, and otherwise turn those businesses around for later sale. This approach has worked incredibly well, so much so that it has attracted a great deal of competition thereby making similar deals increasingly...

The field of Security Analysis has generally come to embrace the theories of modern economics, seemingly without adequate consideration for how to bridge the gap between theory and practice. The consequences of this, most recently experienced in the 2007-2008 credit crisis, have been...

Purpose – This paper profiles the leadership and Financial Strategy principles of Dr. Henry E. Singleton, the late founder of Teledyne Corporation. Design/methodology/approach – The main sources of this paper are a private study prepared by Leon G. Cooperman, Chairman and CEO of Omega...

Berkshire Hathaway took Burlington Northern Santa Fe Railroad private in November of 2009 in a deal valued at $100 per share, which was approximately 31% higher than the share price at the time. Surprisingly, the deal came under immediate criticism from sources relatively close to Warren Buffett...

This paper presents an approach for assessing turnaround opportunities that entails both pre- and post-turnaround valuation considerations, as well as exit planning. The approach is illustrated by way of the Scott Paper Company (Scott) turnaround. In April of 1994, Scott appointed “Chainsaw”...

Purpose – This paper analyzes the applicability of the time-tested margin of safety principle from value investing to corporate strategy. Design/methodology/approach – The main source of this paper is the book "Margin of Safety" (NY: HarperBusiness, 1991); supplementation materials,...

Purpose – This paper seeks to propose a definition of strategic mergers and acquisitions (M&A) that is illustrated by way of case study. It also aims to introduce the strategic concept of “nascent franchise.” Design/methodology/approach – The proposed definition is based on existing...

Insurance companies can leverage the regulatory requirement of a "Risk Management Own Risk and Solvency Assessment" (RMORSA) to improve risk-to-reward decision-making in general, and business planning in particular. This paper profiles several RMORSA-based improvements and explains how those...

This paper analyzes select lessons from the recently published book by Howard Marks, "The Most Important Thing" (NY: Columbia University Press, 2011), from a private equity perspective. Mr. Marks specializes in credit value investments, and as a result private equity investors may overlook the...

Many insurers have undertaken efficiency initiatives for various corporate functions over the years, including rules-based claims systems to control "claims leakage," finance transformation, IT and business process outsourcing, and others. Given the current challenging insurance market (e.g.,...