
Steven Klinsky on Building Businesses
Masters in Business
00:00
The Paper Tablet Is Your Favorite Thinking Spot to Take Notes
The first LBO of a publicly traded company took place in 1979 and that led to your JD MBA thesis about it. In 1981 the highest interest rates in US history were literally the day before he started work September 30 1981 I think the 10 year treasury was 15.84% so when we're at you know 3.7% 10 year treasuries it is nowhere near kind of the situation there had been stagflation where the stock market was lower in 81 than it had been in 1968. The initial idea of leverage buyouts very high inflation was really was financial engineering truthfully back in those days because if you had 95 parts debt and 5 parts equity and 10% inflation you could triple your
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