What Does a Goldsmith Do?

Goldsmith is a financial capitalist with dual nationalities of Britain and France, nicknamed "Financial Crocodile". He once bought a number of companies and immediately dismantled them after dismembering them, earning intermediate margin profits. With this style of mergers and acquisitions he became the man of the day on Wall Street.

Goldsmith

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Goldsmith is a British and French dual national finance

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Mr. Goldsmith, who has dual nationality in Britain and France, is such a financial capitalist, nicknamed "Financial Crocodile". American entrepreneurs hate and fear him.

Goldsmith's first deal was a blockbuster. In April 1972, he spent US $ 700 million in one fell swoop, and merged the "Great Union Supermarket Group" with unsatisfactory operations. This is the ninth largest household business in the United States in the same industry with 600 stores, 27,000 employees, and an annual turnover of 1.2 billion US dollars. After Goh swallowed it, he quickly expanded the group size and set up new sales outlets, bringing the number of chain stores to 900. The sales network spread across the US East Coast and Canada, with an annual turnover of 1.5 billion US dollars. Then, Goethe began to dismember the business gradually. In just one year, he transferred half of all the stores, leaving only 450 high-grade and high-quality branches, and that year he captured a net profit of 100 million US dollars! So Wall Street praised it as: "A magnificent poem about the history of financial adventures", while the industrialists exclaimed "a new financial crocodile emerged." Goldsmith simply did nothing, kept talking, and made a few times in the same way, each time making a profit of 5-7 million US dollars.

In 1977, Goethe again aimed at the diamond company, a large, poorly managed wood company. The diamond company has a history of 100 years and has become one of the 250 largest American companies for inventing matches. Its business area spans 15 industries such as forests, paper products, canning, and plastic pumps, with annual sales of 1.2 billion U.S. dollars, but now its stock price has severely fallen due to poor operating conditions. What makes Gore's heart most exciting is that the company has 700,000 hectares of forest in the northwestern United States. This huge wealth is hardly reflected in the diamond company's stock price ...

In order to surprise, Goldsmith only absorbed 4% of the diamond company's equity in the next two years. Until 1980, the company's effectiveness continued to decline sharply, and a power struggle appeared within its board of directors. At the right time, he launched a total attack. He quickly mobilized hundreds of millions of dollars of funds, absorbed a large number of circulating shares of the diamond company, and publicly announced his intention to merge.

The attacked diamond company was in a state of chaos. While negotiating a compromise with Goethe, they were eager to seek the support of other large consortia. But progress on both fronts has been extremely slow.

The diamond company's operations deteriorated in 1981. Goldsmith launched the offensive at the right time. He first persuaded the company's small and medium shareholders that "too large a scale is a real disaster for the company, and it will not have good results without shrinking its multiple operations." Goss went back and persuaded the diamond company's management to say: In any case, people cannot effectively manage the 15 different business activities. Mergers are a catalyst for achieving a moderate scale and achieving the best results. If the business continues to deteriorate, the board and managers will not be able to explain to the shareholders, and the merger will be reversed. The process is speeding up. "

In the face of Goldsmith's intensive battle, the diamond company's fighting spirit collapsed, and the board of directors announced that it would surrender. In this way, Goethe swallowed companies with sales of $ 1.3 billion for just $ 660 million. He then spent another year selling various companies in the diamond company that were not related to wood production, and in the end it was equivalent to acquiring 700,000 hectares of forest for a small sum of money. He saw that the price of timber would rise worldwide, and that 700,000 hectares of forest would be a big deal without any profit.

In January 1984, Goldsmith made three attempts to acquire Crohn, a top 400 US company. The difficulty this time is not the same as the last two, so it shows the extraordinary skill of Goethe more and more.

Krone is a large paper company, and like Diamond, Goh is also fond of the 900,000 hectares of forest it owns. Combined with Diamond s 700,000 hectares of forest, Goethe s forest area will be half that of Belgium!

Krone knows that the visitors are not good, and quickly asked defense experts to work out a "poison pill plan", a financial plan that would allow attackers to be defeated if they succeed. Krone hopes to scare off this terrible financial crocodile. However, everything was ready, but Goethe had no news. After 11 months of waiting, the chairman of Krone has a sigh of relief, and the "poison pill plan" really works!

Unexpectedly, on December 12, Goldsmith officially announced that he would buy Krone, scaring the chairman of Krone who had just completed the operation to leave the hospital immediately and perfect the original "poison pill plan" from three aspects.

The first is to reduce the dividend and make the acquirer unprofitable; the second is to announce that the new shareholders do not have the right to vote, and the board of directors is replaced by a maximum of 1/3 every year. Any major decision must be approved by the board of directors by 2/3, leaving the acquirer without the right to control the company; It is the company's senior responsible person to pay his three-year salary and total retirement benefits when leaving the company, totaling 100 million US dollars, and the company's backbone to pay his half-year salary, totaling 30 million US dollars, which will make the acquirer carry a heavy financial burden. The plan will automatically take effect when the holdings exceed 20%. Who knew that the plan was announced, and Goethe was silent again. For four months, the management of Krone was shrouded in this silence of fear. The chairman felt that this was not safe, and he found another company, Meade, which had a good relationship, and bought the shares of Krone at a price of $ 50 per share. .

In April 1985, Goldsmith stated that he was very satisfied with the price of 500,000 US dollars, and will make a net profit of 100 million US dollars, so he agreed to give up the acquisition. Dmitry did not expect Goth to be so refreshing, in fact, it was not ready to acquire Krone. Just a few minutes before the two parties signed the agreement, Meade took the initiative to cancel the transaction.

The isolated Krone company had to go back to negotiate with Gossip, because the Gossip insisted on holding more than 30% of the company's control, the negotiations between the two parties broke down.

The six gods-free Krone company thought that Goldsmith would step up to absorb its own stock. Who would have expected the next day, however, was that Goethe announced the withdrawal of the $ 800 million acquisition plan! As soon as the news was announced, unprepared people had sold Krone stocks, causing the stock price to plummet. If the management of the Krone company fell into a five-layer cloud, it was impossible to figure out what medicine was sold in Gourd's gourds. After analysis, they determined that the "poison pill plan" had worked. Krone went up and down and began to formulate the company's "rejuvenation plan" with great interest.

This time, the Krone company has become a big deal. In fact, Goldsmith is taking advantage of the sharp decline in Krone's stock price and stepping up to collect chips. On May 13th, he already owns 19.99% of the shares of Krone, and sent an ultimatum to Krone: Do not cancel the "poison pill", after May 13 will increase the shareholding to more than 20%. The Krone company was shocked first, and then rejoiced: In this way, the "poison pill" plan would take effect, and Goldsmith would suffer a lot!

Who knew that Goldsmith was secretly doing the work of major shareholders and directors, persuading them to sell their stocks to themselves. This trick really worked. By July 10th, it quietly controlled the company's 20% equity. By July 15, it had exceeded 50%. In fact, it had secretly controlled the company.

On July 25, Goldsmith convened an extraordinary shareholder meeting. He used the equity in his hand to become the new chairman of Krone and announced the cancellation of the "poison pill plan". The former chairman wakes up like a dream.

After taking over Krone, Goldsmith disintegrated this huge company. By the end of the year, except for retaining a small company, Krone was almost completely sold off. Goethe only focused on the 900,000 hectares of forest that he acquired. After the successful merger, Goethe became a popular figure on Wall Street again. Of course, this kind of malicious acquisition by the business community also added a hatred to him.