Nov. 26th, 2015

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BLOGGER'S NOTE: I had originally posted this on LJ some time ago during the Presidential Elections of 2012. However, and to my shameless sense of irony, I found very little difference between that election cycle and the upcoming 2016 cycle. In this case, you simply substitute Mitt Romney and Bain Capital for Donald Trump and Trump Enterprises, Inc.

You may find the tone a bit harsh, at the time I was dealing daily with Business Students and Business people, which tended to lack a certain amount of grace and civility. However, I am unapologetic and unrepentant about the message conveyed.

Lastly, I do not endorse or subscribe to any candidate or party affiliation, I see all candidates and parties equally, to be avoided and to deduce their end game as quickly as possible.

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Take a char my dears, and let me tell you tel a story about how my theoretical and less than practical class work related to the Presidential Election Cycle and was actually good for something. I never would have thought my classes on business strategy would related to...well...the elections, but it really does! How? Here's how!

Last night, Westpig and I were on the Highway heading home. I was grousing and fuming about an article my classmates posted about a Wall Street Journal article in which, simply stating, that if you, an MBA candidate, are not graduating an Ivy League School (Wharton, Harvard, Tufts, Stanford, McGill or London School of Economics), and, if you did not study 70 hours to prep for an interview with Bain Capital or Boston Financial Services, don't bother even graduating.

Perhaps my Midwesterner sensibilities were rising to the fore-front (or as we Irish like to say, Getting my Dander Up and Spoiling for a Donnybrook); but to me, the whole East Coast / Ivy League hubris smacks of whinny-spoiled kids whose only attribute is daddy's money to network, or kissing up to someone who leveraging daddy's money - THAT'S it!
Then I added to our conversation, with a touch of Irony, "And as for Bain, how did that paper empire they wanted to build worked for them? Oh Yes, that's right, THEY BANKRUPTED 7 COMPANIES and displaced hundreds of workers in the process because they only looked at the numbers and not the process of how the companies would fit together as a whole!" This is a fatal mistake, not looking at structure, culture or supply chain can destroy a company - something now the Wharton, Harvard, Tufts, Stanford, McGill and London School of Economic are proclaiming as new and radical. A little late, I think; but I digress.

At which point Westpig turns to me and asked, perhaps to change the subject or appease the angry, honking, goose, "What's Bain Capital?"

I told her, "as I understand it, Bain Capital is a private equity firm which finds under-producing or troubled companies, leverages them, and turns them around at a profit."

Westpig shrewdly replies, "You mean like Romney's doing?"

Stop the Bus, Driver! The Harvard-Soviet intellectuals and Ivy-League dilettantes did not make the seminal grasp as quick as did the Piggy in 10 seconds as to Mitt Romey's end game. Another reason to be leary of Ivy-Leaguers and Harvard-Soviet intellectuals.

Ladies and Gentlemen, carefully think about this for a moment.
You have an under-producing entity, which in this case is a country which is suffering financially, and in a tender position for "leveraged" buyout.

What does any business consultant from Bain or Boston Financial do? Simple! Run the numbers, pitch to the company capital for change, then petition the stakeholders, file proxy statements, vote out the old managers and board of directors, and take over the business.

Run the numbers yourself, you will come up with the same conclusion.
If you can read a balance sheet, you can read the BLS statements, same skills apply.

And from there, the classic business consultant strategy takes form; just walk through the following steps with me:

* Step one: Mitt Romney ran the numbers; in this case, interest rates v debt v trade out v trade in v revenues. Troubled but can flip for a maximum profit.

* Step two: The United States of America is a perfect takeover target; weak management and under performing. Begin formulating takeover strategy.

*Step three: pitched to the company stakeholders, that is the Republican Committee first, that he can provide better management than the current directors and better returns. Next, formulate to the shareholders.

*Step four: You seen campaign ads? Guess what? You were petitioned to cast your vote in the company by proxy, as a stakeholder in the country, to change leadership and replace the current CEO and board of directors. Plan for wooing the shareholders and vote proxy to remove managers

* Step five: Did you vote today? Did you look at the ballot? I did, under each candidate's name were a list of delegates that person wins who cast their ballots at the Electoral College. This is a proxy statement for you to leverage your share to Romney's pick for the Board of Directors to change leadership which you filed duly and lawfully.

And behold, step six, you have a new CEO, Board of Directors and company managers.

Case study closed.

And who says a business education is not practical?

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