What Do Investment Banks Do_ _ ChiefExecutive

8/10/2019 What Do Investment Banks Do_ _ ChiefExecutive

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Home Leaders h ip & S t rat egy Leaders h ip What Do Investment Banks Do?

What Do Investment Banks Do?Co rpo rate strate gist an d in ve stme n t ban ke r, Ro be rt L awre n ce K u h n ,

e xamin e s th e diffe re n t face ts o f in ve stme n t ban kin g fro m pu blic

o ffe rin gs, de bt an d e qu ity se cu ritie s to M &A an d stru ctu re d fin an ce .

K u h n s crash co u rse in in ve stme n t ban kin g will te ll a CEO almo st all h e

o r sh e n e e ds to kn o w.

P oste d b y: rob e rt l awre nc e kuhn J u n e 21, 2011

In ves t men t ban ks facilit at e flow s of fu n ds an d allocat ions of capit al. T h ey are fin an cial in t ermediaries , t h e

crit ical lin k bet w een u s ers an d providers of capit al. T h ey brin g t oget h er t h os e w h o n eed mon ey t o in ves t

(e.g., corporat ion s t h at bu ild fact ori es and buy equipment) with those who have money to invest (e.g.,

in s t it u t ion s t h at man age mon ey for pen s ion plan s ), an d t h ey make t h e market s t h at allocat e capit al an dregu lat e price in t h es e fin an cial t ran s act ion s (i.e., w h o get s h ow man y dollars , w it h w h at t erms an d at w h at

cost).

Inves tment banking is a dyn amic in du s t ry ch aract eriz ed by flu x an d t ran s format ion . Fin an cial in s t ru men t s

h ave grow n more complex as fin an cial in t ermediaries h ave become more compet it ive. Bliz z ards of

in n ovat ive in s t ru men t s h ave s w ept fin an cial market s . Bou n daries amon g divers e fin an cial in s t it u t ion s h ave

blu rred. Barriers bet w een in t ern at ion al fin an cial market s h ave eroded. An d amplifyin g t h e complexit y an d

t h e compet it ion , fin an cial market s , fir ms , pr oduct s an d t ech n iqu es are mergin g an d meldin g.

It is in t h is volat ile en viron men t t h at in ves t men t ban ks of all s iz es an d s t rat egies s t ru ggle w it h ch an ge.

Investment banking, long simply synonymous with the domestic underwriting and market making of

corporat e equ it y an d debt s ecu rit ies , h as expan ded dramat ically in pas t decades : n ew fu n ct ion s (e.g., t h e

promin en ce of mergers an d acqu is it ion s , M& A), n ew produ ct s (e.g., ris k man agemen t mech an is ms s u ch as

s w aps ), n ew t ech n iqu es (e.g., s ecu rit iz at ion of illiqu id receivables ), n ew in t ern at ion al exch an ges (e.g.,

import an ce of Hon g Kon g in addit ion t o New York, Lon don an d T okyo), n ew fin an cial market s (e.g., Ch in a),

an d n ew mu s cle (e.g., privat e equ it y, h edge fu n ds an d merch an t ban kin g).

What services can investment bankers provide, and how can senior executives use investment banks to their

firms advan t age?

Strategies of Investment BanksIn ves t men t ban ks en able is s u ers t o rais e capit al (i.e., en t erpris es t h at s ell or is s u e s ecu rit ies for cas h ) an d

in ves t ors t o place capit al (i.e., in dividu als or in s t it u t ion s t h at bu y or in ves t in t h os e s ecu rit ies ) in t h e mos t

reas on ably efficien t man n er for bot h : t h e low es t overall cos t of capit al for is s u ers an d t h e h igh es t rat io of

ret u rn -t o-ris k for in ves t ors . Des ign in g fin an cial in s t ru men t s t h at ever more clos ely mat ch t h es e oppos it e

des ires of is s u ers an d in ves t ors is t h e h allmark of t h e in du s t ry.

W h et h er debt or equ it y, all capit al h as a cos t an d is s u ers w an t t o rais e capit al at t h e low es t pos s ible overall

(all-in ) cos t . T h e cos t of debt is it s in t eres t rat e, repaymen t s ch edu le, coven an t s , an d t h e like. T h e cos t of

equ it y is t h e dilu t ion of cu rren t s t ockh olders relat ive t o t h e mon ey rais ed. T h e cos t of capit al is direct ly

relat ed t o t h e overall valu e of t h e firm as det ermin ed by t h e market capit aliz at ion an d t o t h e apparen t ris k of

t h e firm as det ermin ed by bot h compet it ive bu s in es s (produ ct -market ) an d fin an cial s t ru ct u re (leverage,

debt /equ it y). In ves t ors , n at u rally, w an t t o ach ieve t h e h igh es t overall ret u rn commen s u rat e w it h a given

level of ris k. By arran gin g mon et ary t ran s act ion s , exch an ges an d relat ion s h ips amon g econ omic en t it ies ,

in ves t men t ban ks make t h e capit al market s more efficien t . Mat ch in g t h e h igh ly s pecific profiles of myriad

is s u ers an d in ves t ors is t h e s pecial capabilit y t h at in ves t men t ban ks offer.

Scope of Investment BanksFollow in g are fou rt een act ivit ies of in ves t men t ban ks . T h ey can be allocat ed in t o cat egories s u ch as

Corporat e Fin an ce, Capit al Market s , W ealt h Man agemen t / Privat e Clien t , Alt ern at ive In ves t men ts ,

an d t h e like.

Public Offerings of Debt and Equity Securities

T h ere are fou r gen eral t ypes of pu blic offerin gs : 1) In it ial pu blic offerin gs (IPOs ) of s ecu rit ies is s u ed by

compan ies t h at h ave n ever before is s u ed an y pu blic s ecu rit ies (n ormally common s t ock is t h e firs t s ecu rit y

t o be is s u ed in an IPO) 2) In it ial pu blic offerin gs of n ew s ecu rit ies t h at compan ies t h at are already pu blic

h ave n ot before is s u ed (e.g., a n ew clas s of con vert ible debt s ecu rit y) 3) Fu rt h er pu blic offerin gs of

s ecu rit ies t h at are already pu blicly t raded (e.g., t h e is s u an ce of addit ion al common s t ock w h en it s price is

s u fficien t ly h igh s o t h at cos t of capit al is s u fficien t ly low ) 4) Pu blic offerin gs by compan y s h areh olders of

s ecu rit ies t h at are already pu blicly t raded (e.g., w h en an origin al large s h areh older, s ay a privat e equ it y

fund, wants to cash out its position).

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In t h e pas t w e cou ld clean ly differen t iat e debt an d equ it y s ecu rit ies an d pu t t h em in t o s eparat e cat egories .

In ves t men t grade corporat e bon ds w ere dis t in ct from h igh -yield ( ju n k ) bon ds . T oday t h e old dis t in ct ion s

are fu z z y. Debt an d equ it y are more poin t s on a con t in u u m t h an boxes on a ch art . Ju n ior s u bordin at ed z ero-

coupon convertible debentures can be thought more equity than debt and dutch-auction preferred stock can

be t h ou gh t more debt t h an equ it y. Geograph y, as w ell, is n o lon ger a con s t rain t : Compan ies can reach

an yw h ere in t h e w orld t o low er t h eir cos t of capit al.

Private Placements of Debt and Equity Securities

Privat e placemen t is t h e s ellin g of s ecu rit ies t o in ves t ors w it h ou t t h e regu lat ory requ iremen t s of pu blic

offerin gs . T h e regu lat ion s defin in g privat e placemen t s are complex an d t h e s ecu rit ies an d in ves t men t

veh icles offered are n u merou s . Ran gin g from corporat e equ it ies t o real es t at e in t eres t s , privat ely placed

s ecu rit ies carry a h igh er ret u rn t h an s imilarly s t ru ct u red s ecu rit ies t h at can t rade in t h e pu blic market s . T h e

los s of liqu idit y en h an ces ris k an d t h erefore requ ires a proport ion ally h igh er ret u rn .

Mergers and Acquisitions (M&A)

T h is is t h e fron t -page s t u ff t h e h u ge acqu is it ion s , t akeover bat t les , h os t ile at t acks an d fierce defen s es . Bu t

it s n ot all w ar. T h e vas t majorit y of M& As are frien dly. In ves t men t ban kers s eek t o opt imiz e price an d

t erms , s o t h at t h e bes t price may n ot be t h e h igh es t price for clien t s ellers (all cas h or con fiden ce in

clos in g may be more import an t ) n or t h e low es t price for clien t bu yers (cert ain t y of get t in g t h e deal don e

may be more vit al). In ves t men t ban ks fin d, facilit at e, price, an d fin an ce mergers an d acqu is it ion s . Als o

in clu ded in M& A are leverage bu you t s by privat e equ it y, t h e res t ru ct u rin g an d recapit aliz at ion of compan ies ,

an d t h e reorgan iz at ion of t rou bled compan ies .

Financial Advisory / Sponsor Group Finance

Fin an cial advis ory s ervices h ave grow n dramat ically as in ves t men t ban ks w ork w it h t h e large n u mber of

privat e fu n ds h edge fu n ds an d privat e equ it y t h at h ave mu s h roomed in recen t years an d con t rol

h u n dreds of billion s of dollars . S ervices in clu de (i) rais in g of capit al for gen eral fu n ds , (ii) M& A acqu is it ion s ,

(iii) fin an cin g acqu is it ion s , (iv) IPOs of port folio compan ies ow n ed by t h e fu n ds (w h en appropriat e) an d (v)

M& A of t h es e compan ies (w h en IPOs are n ot appropriat e). In ves t men t ban ks like t o in volve t h ems elves w it h

h edge fu n ds an d privat e equ it y s in ce t h ey are t ran s act ion orien t ed, gen erat e h u ge fees an d are in perpet u al

deal mode.

Fairness Opinions

Fairn es s opin ion s s u pport M& A, leveraged bu you t s an d res t ru ct u rin gs for pu blic compan ies . Providin g an

in depen den t , defen s ible, expert s t at emen t on valu es an d t h e fairn es s of t h os e valu es is an es s en t ial part

of any such public transaction. Investment banks command what may seem to be exorbitantly high fees for

givin g fairn es s opin ion s , con s iderin g t h e n u mber of h ou rs w orked (an d t h e amou n t of paper produ ced). T h e

reas on is t h e s ign ifican t liabilit y t h e in ves t men t ban k as s u mes , w h ich can be realiz ed bot h in t h e cou rt s via

s h areh older s u it s an d in in du s t ry repu t at ion . In fact , major in ves t men t ban ks do n ot like t o provide fairn es s

opin ion s t h e ris ks are t oo h igh for t h e fees bu t gen erally do s o on ly t o s erve import an t clien t s .

Structured Finance / Securitization

T h e creat ion of s yn t h et ic fin an cin g mech an is ms an d s t ru ct u res makes pos s ible allocat ion s of capit al w it h

bet t er ris k-ret u rn feat u res for bot h is s u ers an d in ves t ors . T h is is gen erally ach ieved by in s t ru men t s t h at (i)

pool as s et s , (ii) allocat e liabilit ies in t o differen t t ren ch es (w it h differen t ris k-ret u rn profiles ), an d (iii) are

contained within an independent legal entity.

S ecu rit iz at ion is t h e proces s by w h ich formerly illiqu id as s et s , mos t ly s mall con s u mer receivables of all kin ds

(e.g., h ome mort gages , au t omot ive loan s , credit card receivables ), can be liqu efied by t h eir bein g rolled

u p in t o large, pu blicly t radable s ecu rit ies w it h improved ris k-ret u rn for bot h is s u ers an d in ves t ors . (S u ch

innovations exemplify investment bankings contribution to financial markets.)

S ecu rit iz ed obligat ion s are s oph is t icat ed in des ign an d oft en requ ire s t at is t ical an alys is an d s en s it ivit y t es t in g

of key crit eria (e.g., defau lt rat es , prepaymen t profiles , in t eres t rat e s en s it ivit y, t ax ch an ges , et c.). For

example, a ch an ge from forecas t ed rat es of prepaymen t (e.g., du e t o in t eres t rat e declin es an d t h e

res u lt in g refin an cin g of older, h igh er-rat e mort gages ) can res u lt in s h ockin g differen ces in ret u rn s from

in it ial expect at ion s . (Prin cipal it s elf can s u ffer s ign ifican t ly.)

Ot h er kin ds of s t ru ct u re fin an ce in clu de project fin an ce, w h ich is u s ed t o fu n d large-s cale en t erpris es s u ch

as pow er plan t s an d in fras t ru ct u re.

Risk Management

Hedgin g pos it ion s in in t eres t rat es , foreign cu rren cy exch an ges an d commodit y pos it ion s t h rou gh s w aps ,

opt ion s an d fu t u res are an es s en t ial bu ildin g block of fin an cial market s . S w aps are t h e mech an is m by w h ich

t w o or more part ies exch an ge t h eir debt obligat ion s in order t o con t rol more precis ely each part ys des ired

ris k/ret u rn profile. S w aps w ork becau s e differen t en t it ies h ave differen t comparat ive advan t ages w h en

pricin g differen t cat egories of debt in differen t fin an cial market s . Part ies of dis s imilar credit rat in gs or

fin an cin g n eeds can exch an ge t h eir obligat ion s (e.g., from s h ort er t erm t o lon ger t erm an d vice vers a) in

order t o opt imiz e t h eir fin an cial s t rat egy an d s t ru ct u re. Ris k man agemen t grou ps combin e expert is e in

divers e h edgin g in s t ru men t s t o develop a complet e h edgin g s t rat egy for en t erpris es .

Merchant Banking

Merchant banking is the commitment of an investment banks own capital to equity-level investments and

part icipat ion s , s eekin g very h igh ret u rn s . S u ch commit men t of capit al is made for t w o gen eral pu rpos es : 1)

t o facilit at e a clien t t ran s act ion (i.e., a bridge loan u n t il perman en t fin an cin g is obt ain ed) or 2) t o pu rch as e

s ecu rit ies in an operat in g compan y for t h e firms ow n accou n t (i.e., w h et h er 100% ow n ers h ip by t h e

in ves t men t ban k, in part n ers h ip w it h a clien t , or as t h e man ager of an LBO[BP1] fu n d). Bridge loan s are

h igh ly profit able, combin in g commit men t fees , placemen t fees , h igh in t eres t rat es ,an d equ it y kickers .

Public Trading of Debt and Equity Securities

Mos t large in ves t men t ban ks main t ain s t ron g t radin g capabilit ies , w h ich is a s ign ifican t t h ou gh volat ile profit

cen t er profit s are made bot h from commis s ion s gen erat ed by t radin g for clien t s an d from capit al

appreciat ion gen erat ed by t radin g for t h e firms ow n accou n t . In ves t men t ban ks act as brokers , dealers ,

an d/or market makers (w h ich can differ for differen t s ecu rit ies ). In addit ion t o t radit ion al s t ocks an d bon ds ,


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mon ey market in s t ru men t s an d commodit ies (e.g., gold, s ilver, coffee, cru de oil, variou s met als , variou s

foods ), in ves t men t ban ks creat e s yn t h et ic s ecu rit ies (e.g., s t riped T reas u ries , in t eres t on ly an d prin cipal

on ly in s t ru men t s ), w h ich by appealin g t o differen t in ves t ors , en h an ce t h e ris k-ret u rn for all.

Brokers are commis s ion ed agen t s w h o repres en t eit h er bu yers or s ellers an d w ork mu ch as do real es t at e

agen t s t h ey carry n o s ecu rit ies in in ven t ory an d t h erefore as s u me n o ris k in price variat ion or in t eres t -

ch arge. Dealers s et bid-an d-as k prices for each s ecu rit y t h ey offer for t rade by main t ain in g an in ven t ory of

s ecu rit ies , dealers as s u me a price ris k s in ce t h e market may go u p or dow n du rin g t h e t ime t h ey h old t h e

s ecu rit ies . Market Makers es t ablis h (an d s u pport ) t h e en t ire market for a s ecu rit y on eit h er s ide of a

t ran s act ion . Brokers an d dealers are regu lat ed by t h e variou s exch an ges of w h ich t h ey are members an d

t h e Nat ion al As s ociat ion of S ecu rit ies Dealers (NAS D), w h ich is t h e s elf-regu lat in g organ iz at ion t o w h ich

t h ey all belon g.

Investment Research and Security Analysis

For decades , t h e res earch capabilit ies of an in ves t men t ban ks s ecu rit y an alys t s w ere oft en t h e firms mos tpres t igiou s an d vis ible s t ren gt h . (More recen t ly, M& A, IPOs , LBOs , an d privat e equ it y / h edge fu n ds h ave

u s u rped t h e limeligh t .) In deed, man y in ves t men t ban ks u s ed t h e repu t at ion derived from t h eir in ves t men t

an alys is expert is e t o develop u n derw rit in g an d mon ey man agemen t bu s in es s es . T ypical s u bdivis ion s are

Global E qu it ies an d Fixed-In come. T oday, aft er variou s s can dals an d pros ecu t ion s , in ves t men t ban ks mu s t

en force s t rict compart men t aliz at ion bet w een t h eir corporat e fin an ce an d in ves t men t res earch depart men t s

(t h e s o-called Ch in es e W all ).

Wealth Management

T h e accu mu lat ion of vas t w ealt h by in s t it u t ion al in ves t ors (i.e., pen s ion an d in s u ran ce fu n ds ), an d by rich

an d s u per-rich in dividu als , h as made mon ey man agemen t a vit al bu s in es s . (For in dividu als , t h e depart men t s

are called privat e ban kin g or privat e clien t . ) In ves t men t ban ks compet e w it h on e an ot h er, an d w it h

large commercial ban ks an d s pecializ ed mon ey man agemen t firms in accu mu lat in g as s et s u n der

man agemen t . Hu n dreds of billion s of dollars are at s t ake.

Alternative Investments

T h e in ves t men t s in fin an cial produ ct s ot h er t h an exch an ge-t raded s t ocks an d bon ds h ave become a h u ge

bu s in es s , s u ch as privat e equ it y, real es t at e, arbit rage, in t ern at ion al, an d t h e like. T h e developmen t of fu n dsu n der man agemen t , in clu din g privat e equ it y an d h edge fu n ds , h as in creas ed dramat ically, an d in ves t men t

ban ks bot h develop t h eir propriet ary produ ct s an d s ell ot h ers .

Public / Government Finance

T h e rais in g of mon ey for govern men t s ( s overeign s ) at all levels : n at ion al govern men t s , s t at e

governments, county and municipal governments. Also included is working with national governments in the

privat iz at ion of govern men t as s et s .

International Investment Banking

Globaliz at ion is t h e byw ord of in ves t ment ban kin g. Fin an cin g h as become a mu lt i-market s earch for t h e

low es t cos t of capit al for is s u ers , an d a 24-h ou r-a-day qu es t for t h e h igh es t ret u rn for in ves t ors . Grow t h is

h igh es t in emergin g market s , t h e opport u n it ies for in ves t men t , u n derw rit in g an d M& A are ext en s ive, an d all

major in ves t men t ban ks h ave s ign ifican t pres en ce in man y cou n t ries .

Bot h is s u ers an d in ves t ors s eek t h e opt imu m level of ris k for a given level of ret u rn . S u ch opt imiz at ion s

cover t h e u n cert ain t ies an d volat ilit ies of in t eres t rat es , cu rren cy exch an ge rat es , credit availabilit y (for

u s ers of capit al), credit in s t abilit y (for providers of capit al) an d equ it y in ves t men t s . Opt imu m ris k for a given

ret u rn , or con vers ely opt imu m ret u rn for a given level of ris k, is ach ieved by u s in g t ech n iqu es of fin an cet h eory s u ch as h edgin g an d divers ificat ion . T h e in t ern at ion al expan s ion of on es in ves t men t h oriz on s allow s

more efficien t opt imiz at ion procedu res for bot h is s u ers an d in ves t ors i.e., in ves t men t port folios can be

divers ified more w idely, t h ereby expan din g t h eir ris k/ret u rn fron t ier an d ach ievin g h igh er efficien cy.

Underwriting Public OfferingsThe public offering of debt and equity securities is the foundation of investment banking. Although the term

u n derw rit ing s eems t o imply an abs olu t e gu aran t ee t h at t h e man agin g in ves t men t ban k an d it s s yn dicat e

members (i.e., t h e u n derw rit ers ) w ill be legally bou n d t o pu rch as e t h e s ecu rit ies from t h e is s u in g compan y,

t h e real w orld is more complicat ed. Regardin g an in it ial pu blic offerin g, t h ere are really on ly t w o approach es

that an investment bank can take: firm commitment or best efforts.

Firm Commitment

A firm commit men t mean s t h at t h e man agin g in ves t ment ban k an d it s s yn dicat e w ill agree t o bu y t h e

en t ire is s u e at a n egot iat ed price. T h e u n derw rit ers w ill t h en res ell t h es e s h ares t o it s clien t s , makin g as it s

profit s t h e previou s ly n egot iat ed s pread, w h ich is t h e differen ce bet w een t h e gros s proceeds paid by t h e

pu blic an d t h e n et proceeds given t o t h e is s u er. T h is mean s t h at t h e u n derw rit ers bear t h e en t ire ris k of

per s h are pricin g an d t h e amou n t of t ot al proceeds rais ed. (It s h ou ld be s t res s ed t h at a firm commit men t is oft en n ot as firm as it s ou n ds . A firm commit men t on ly becomes abs olu t ely firm on t h e offerin g day

it s elf (or t h e n igh t before) ju s t before t h e is s u e goes effect ive, w h ich is t h e momen t w h en t h e S E C gives

it s fin al approval. Un t il t h en t h e firm commit men t is n ot firm, n o mat t er w h o promis es w h at t o w h om.

(E ven t h en t h e u n derw rit in g agreemen t is n ot perfect ly firm it h as variou s ou t s , for market dis t u rban ces ,

act s of God, an d t h e like.) Fu rt h ermore, all t h e market in g of t h e is s u e h as already been don e t h e road

s h ow s h ave been con du ct ed an d t h e u n derw rit in g s yn dicat e members kn ow w h ich of t h eir clien t s are

commit t ed t o bu y h ow man y s h ares . T h ey kn ow if t h e is s u e is overs old or u n ders old an d can make fin al

adju s t men t s t o price accordin gly. T h e bot t om lin e is t h at w h en in ves t men t ban ks give firm commit men t s

they have little uncertainty.

Best Efforts

A bes t effort s relat ion s h ip is w h ere t h e in ves t ment ban k u s es it s expert is e as s t ru ct u rer in des ign in g t h e

is s u e an d as market er in s ellin g t h e is s u e. T h is mean s t h at t h e u n derw rit ers bear n o ris k in t h e deal, leavin g

to the issuing company all the uncertainty of per share pricing and the amount of total proceeds to be

rais ed.

The Underwriting Process


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T h e u n derw rit in g proces s is a formal proces s in volvin g man y s imu lt an eou s fu n ct ion s , procedu res ,

requ iremen t s an d act ivit ies . Follow in g are s ome of t h e crit ical s t eps : compan y in t eres t an d u n derw rit er

s elect ion , prelimin ary an alys is of is s u e s t ru ct u re an d s ecu rit ies pricin g, du e diligen ce review s by

u n derw rit ers an d t h eir cou n s els , legal an d accou n t in g an alys is an d docu men t preparat ion , prelimin ary

compilation of the registration statement, submission of registration statement to the Security and Exchange

Commis s ion (S E C), circu lat ion of prelimin ary pros pect u s t o pros pect ive in ves t ors , in format ion meet in gs

( road s h ow s ) in major cit ies for des cribin g t h e compan y an d it s s ecu rit ies , receive an d res pon d t o S E C

commen t s , fin al pricin g n egot iat ion s an d s ign in g t h e u n derw rit in g agreemen t , fin al regis t rat ion s t at emen t

filed w it h t h e S E C, S E C approval declarin g t h e is s u e effect ive, pres s releas es an d t ombs t on e advert is emen t ,

clos in g an d s et t lemen t .

In ves t men t ban ks are at t h e cen t er of bu s in es s an d fin an ce, an d all s en ior execu t ives , irres pect ive of t h eir

direct res pon s ibilit ies , n eed t o u n ders t an d w h at t h ey do an d h ow t h ey do it .

ABOUT ROBERT LAWRENCE KUHN

Dr. Robert Lawrence K uhn i s an i nternati onal corporate s trategi s t, i nves tment banker and expert

on Chi na. Si nce 1989, he has worked wi th Chi nas s eni or l eaders and advi s ed the Chi nes e

government on matters of economi c pol i cy, i ndus tri al pol i cy, mergers and acqui s i ti ons , s ci ence

and technol ogy, medi a and cul ture, Si no-U . S. rel ati ons , and a vari ety of i nternati onal bus i nes s

matters . Dr. K uhn advi s es l eadi ng mul ti nati onal compani es , CE O s and C-Sui te executi ves ,

regardi ng formul ati ng and i mpl ementi ng Chi na s trategi es i n a vari ety of s ectors , i ncl udi ng s ci ence and

technol ogy, energy and res ources , i ndus tri al , medi a and entertai nment, heal thcare / medi cal / pharmaceuti cal s ,

cons umer products , and fi nanci al s ervi ces . He works wi th major Chi nes e compani es on s tructuri ng thei r capi tal

markets fi nanci ng and M&A acti vi ti es .

Thousands of Potential New

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What, me worry?

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Justin, I appreciate

the comment. If you look all over the

web...please do a search...you'll find

hy Crony Capitalism Hurts Us All

The issue is one

of communications and the Constitution.

Americans have

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"CEOs" aren't losing

credibility in a general sense. Each

person should be judged individually.

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