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MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith

MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith. Executive Summary. Financial Analysis The market crash time line Gerson Lehrman Credit Suisse & GLG alliance Credit Suisse and competitors External Analysis A Look at Each Company The Deal Competitive Advantage

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MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith

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  1. MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith

  2. Executive Summary • Financial Analysis • The market crash time line • GersonLehrman • Credit Suisse & GLG alliance • Credit Suisse and competitors • External Analysis • A Look at Each Company • The Deal • Competitive Advantage • Internal Analysis

  3. Financial Analysis: The Market Crash Time Line • October 2004: • Roots of Capital Market Crisis • SEC lifted debt restrictions on 5 major investment banks • Assumed debt in major excess of cash reserves • Increased leverage 40x higher than cash reserves • October 2005: • U.S. housing market boom began to drop • April 2007: • Industry collapsed • 25 subprime lenders declared bankruptcy • October 10, 2007: • Record high opening of 14,165 • October 2008: • Opening down to 8,569 • Fannie Mae & Freddie Mac taken over by U.S. Treasury Dept. • Merrill Lynch sold to Bank of America • Lehman Brothers went into Chapter 11 bankruptcy • Dow Jones fell 504 pts • September 2008: • Government took over AIG • IMF deemed this a “major global downturn” • Banks worldwide cut rates to boost world economy

  4. Financial Analysis: GersonLehrman Group (GLG) • Sustainability through tough times: • 2006 • Revenue up 30% a year on average since 1999 • Total Revenue $189 million • 2007 • Total Revenue $233 million • 2008 • 90% of revenue from financial services, 80% inside the U.S. • 90% client renewal rates • Total Revenue goal of $284 million

  5. Financial Analysis: Credit Suisse • The Alliance with GLG: • Thought to generate $100 million in global commissions • Save Credit Suisse up to $5 million on own consulting agreements

  6. Financial Analysis: CS against competitors http://finance.yahoo.com/ http://www.reuters.com/

  7. Internal Analysis: Credit Suisse • Leading Global Financial Services Firm • 300 Equity Research Analysts • Company & Business Model Research • Published Reports with Investment Advice • Peers Relationship Database • Supply Chain - Ecology

  8. Internal Analysis: GLG • Largest Expert Network • 200 Executives, Physicians, Scientists, Engineers, etc. • Transaction Driver, not Relationship Based • Experts managed projects through GLG • 6 Vertical Sectors, 2 Horizontal

  9. Internal Analysis: The Deal • Goldman Sachs Hudson Street Initiative • Credit Suisse • Improved Information flow • Access to Unique Resources • Cost Savings • 200,000 expert network • Differentiate & Grow • GLG • Growth • Added Experts • Strengthen position as Comprehensive Marketplace Expertise • Match clients with experts better

  10. Internal Analysis: Competitive Advantage First Movers Branding Comprehensive Marketplace Experts

  11. Recommendations Keep doing what they are doing!

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