Find the Key Man and Close Before Combat

"The guessing, however, was based on the failure of the observers to discern the one critical detail common to any major Desmarais deal — the key man. In any major takeover or deal Desmarais had made to date, whether it was on the Sudbury-Copper Cliff bus run, or the Power acquisition, Desmarais had always targeted and dealt with a key man, the one who had the authority not only to make decisions, but also to negotiate deals."

"His only problem was with the key man in the scenario — the mayor of Sudbury. Targeting the key man has always been a Des¬ marais strategy: he finds the person who has a vested interest in helping him get what he wants. The mayor was not one of those people, and Desmarais finally had to call it quits on Sudbury and make another characteristic move — a quick, clean break, with no recourse to arbitration, conciliation or outside interference."

"he was blessed by luck. Subsequent to the Gelco deals, Desmarais always tried to target companies that had single or “key man” ma¬ jority shareholders who were willing to sell."

"So, while planning and preparing the changes, Desmarais still kept his eyes open to opportunity that could be capitalized upon concurrent with the Power shakeup. While all the corporate shaping and trading was going on, Desmarais also picked up a plum investment, Great- West Life Assurance Co., that would prove to be a key element to Power’s long-term profitability. Desmarais acquired Great-West in an uncharacteristic manner — he bid against another acquisitor, and completed the purchase without the willing aid and consent of the “key man.” Yet Desmarais dislikes corporate battles. In his 1975 testimony before the Bryce Commission, the Royal Commission of Inquiry into Corporate Concentration, he stated flatly, “I don’t wish to engage in any fights if I can avoid it. I don’t like fights.”4"