Barbarians at the Gate

About the Author

Bryan Burrough and John Helyar are seasoned journalists who brought their investigative prowess to the finance world with their work, Barbarians at the Gate. Burrough, an accomplished writer with a knack for dissecting the intricacies of business and finance, is known for his contributions to publications like The Wall Street Journal and Vanity Fair. John Helyar, equally distinguished, made his mark in journalism through his in-depth reporting on corporate America. Together, they embarked on a journey to chronicle one of the most significant corporate battles of the 20th century, bringing a story of greed, power, and the high-stakes world of leveraged buyouts (LBOs) to life.

Main Idea

Barbarians at the Gate is a gripping tale of the hostile takeover of RJR Nabisco, a company at the heart of a financial whirlwind in the late 1980s. The book delves into the mechanics of leveraged buyouts, showcasing how corporate executives, investment bankers, and financiers wield their influence to orchestrate billion-dollar deals. At its core, the story is about the greed and ambition that drive the corporate world, and how these forces can lead to both monumental success and catastrophic failure. Through a detailed chronology of the events leading to the RJR Nabisco LBO, Burrough and Helyar not only tell the story of this specific deal but also highlight broader trends in corporate America during this era.

Table of Contents

• Introduction – Setting the Stage for a Corporate Battle
• The Rise of Ross Johnson – From Standard Brands to RJR Nabisco
• Leveraged Buyouts Explained – Understanding the Mechanics
• The Battle Begins – The Initial Stages of the RJR Nabisco LBO
• The Bidding War – Competitors Emerge and Battle for Control
• The Aftermath – The Impact on RJR Nabisco and the Corporate World
• Legacy of the LBO – How RJR Nabisco Changed Corporate America

Introduction – Setting the Stage for a Corporate Battle

The 1980s were a time of unprecedented financial innovation and upheaval in corporate America. Leveraged buyouts (LBOs) became a popular strategy among companies seeking to maximize shareholder value, often at the expense of long-term stability. The story of RJR Nabisco, as detailed in Barbarians at the Gate, serves as a microcosm of this era, where greed and ambition led to the largest LBO in history at that time. This book provides an in-depth look at the key players involved, the tactics they used, and the consequences of their actions.

The authors begin by introducing the reader to the world of high finance, where corporate executives and investment bankers operate with near-immunity from the consequences of their decisions. They set the stage for the drama that unfolds, highlighting the enormous stakes involved and the personalities that would clash in the pursuit of corporate dominance.