Entity Dossier
entity
CSL
Strategic Concepts & Mechanics
Strategic PatternFlanking Around Entrenched Giants
Identity & CultureLoyalty Bought with Friday Paychecks
Relationship LeverageBoard Seats as Reconnaissance Posts
Cornerstone MoveSell the Company to Itself — Internal Reverse Takeovers
Competitive AdvantageClassified Stock as Control Multiplier
Cornerstone MoveFind the Key Man and Close Before Combat
Operating PrincipleCash Business Preference from Bus Roots
Strategic PatternConcentrated Diversity Over Grab-Bag Portfolios
Signature MoveWin Small, Consolidate, Then Leap Geometrically
Signature MoveWallpaper-Roll Planning Then Relentless Pressure
Cornerstone MoveBuy Cheap Shells, Strip and Reload the Portfolio
Operating PrinciplePool-of-Light Negotiation Theater
Relationship LeveragePolitical Access Without Political Office
Signature MoveDebt as Temporary Tool, Never Permanent Foundation
Capital StrategyDividends as Upward Cash Escalator
Signature MoveChief of Staff Handles Architecture, Boss Handles Vision
Decision FrameworkAcquire Capacity, Never Build in Inflation
Signature MovePocket the Stake, Play with Winnings Only
Primary Evidence
"CSL, on the other hand, had borrowed a good portion of the $70 million cash it had paid to Power, essentially assuming the debt Power incurred to purchase csl. Because csl was an operating company with income from operations, it could write off the interest on the debt against income and reduce its taxes. The same could be done with the interest it paid on the debentures given to Power. The reduced income taxes meant higher retained earnings and, consequently, higher dividends for shareholders, in this case, Power."
Source:Rising to Power - Paul Desmarais & Power Corporation