Farley Industries

Strategic Concepts & Mechanics

Strategic PatternProcess of Bites, Not Grand Plans Decision FrameworkCash Flow Over Earnings as Debt Survival Test Relationship LeverageHighly Confident as Substitute for Actual Capital Capital StrategyInterest Deductibility as Leveraged Assault Fuel Competitive AdvantageNOL as Bidding War Nuclear Option Signature MoveSpeed-of-Sale as Debt Survival Doctrine Signature MoveLawyer as Deal Principal, Not Hired Gun Signature MoveParis Apartment Discipline Signature MoveAll Debt Disguised as Equity Cornerstone MoveBuy the Whole, Sell Everything But the Crown Jewel Cornerstone MoveBlind Pool Before the Target Exists Cornerstone MoveBribe the Gatekeeper, Storm the Castle Cornerstone MoveBankruptcy's Tax Corpse as Acquisition Weapon Competitive AdvantageTax Arbitrage as Structural Weapon Operating PrincipleProfessional Manager Decay Across Generations Risk DoctrineNever Cut Back a Committed Deal Signature MoveMilken: Four-Thirty AM Cathedral-Builder With No Office Capital StrategyVenture Capital Masquerading as Debt Signature MovePeltz: Spittle-on-the-Check Persistence from Near-Broke Signature MovePerelman: Borrowed $1.9M to a Boeing 727 in Seven Years Cornerstone MoveManufactured Credibility from Thin Air Decision FrameworkContra-Thinking as Default Mental Operating System Identity & CultureForced Savings as Loyalty Handcuffs Cornerstone MoveCash Flow Over Earnings as the Only Truth Cornerstone MoveBuy the Core, Sell the Pieces, Erase the Debt Signature MoveKingsley: Mount Everest Desk, Twenty-Year Sounding Board Signature MoveIcahn: Wrestling-a-Ghost Negotiation Until the Last Penny Cornerstone MoveOwner's Equity as the Non-Negotiable Discipline

Primary Evidence

"Drexel clients—in addition to Triangle Industries—would make bids for companies, all backed by Milken’s junk bonds. Mesa Petroleum, with a net worth of $ 500 million, would go for Unocal. Lorimar, with a net worth of $ 105 million, would offer $ 1 billion for Multimedia. Sir James Goldsmith would make a bid for Crown Zellerbach Corporation for $ 1.1 billion. Golden Nugget, with a net worth of $ 230 million, would go for Hilton Hotels for about $ 1.8 billion. And Farley Industries, with earnings of $ 6 million, would go for Northwest Industries, for about $ 1.4 billion. Other bids would take longer to germinate—but they would turn out to be the most fruitful of all."

Source:The Predators' Ball

"Drexel clients—in addition to Triangle Industries—would make bids for companies, all backed by Milken’s junk bonds. Mesa Petroleum, with a net worth of $500 million, would go for Unocal. Lorimar, with a net worth of $105 million, would offer $1 billion for Multimedia. Sir James Goldsmith would make a bid for Crown Zellerbach Corporation for $1.1 billion. Golden Nugget, with a net worth of $230 million, would go for Hilton Hotels for about $1.8 billion. And Farley Industries, with earnings of $6 million, would go for Northwest Industries, for about $1.4 billion. Other bids would take longer to germinate—but they would turn out to be the most fruitful of all."

Source:Predator's Ball

Appears In Volumes

The Predators' Ball Predator's Ball