60 likes | 190 Vues
MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith. Executive Summary. Financial Analysis The market crash time line Gerson Lehrman Credit Suisse & GLG alliance Credit Suisse and competitors External Analysis Internal Analysis.
E N D
MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith
Executive Summary • Financial Analysis • The market crash time line • GersonLehrman • Credit Suisse & GLG alliance • Credit Suisse and competitors • External Analysis • Internal Analysis
Financial Analysis: The Market Crash Time Line • October 2004: • Roots of Capital Market Crisis • SEC lifted debt restrictions on 5 major investment banks • Assumed debt in major excess of cash reserves • Increased leverage 40x higher than cash reserves • October 2005: • U.S. housing market boom began to drop • April 2007: • Industry collapsed • 25 subprime lenders declared bankruptcy • October 10, 2007: • Record high opening of 14,165 • October 2008: • Opening down to 8,569 • Fannie Mae & Freddie Mac taken over by U.S. Treasury Dept. • Merrill Lynch sold to Bank of America • Lehman Brothers went into Chapter 11 bankruptcy • Dow Jones fell 504 pts • September 2008: • Government took over AIG • IMF deemed this a “major global downturn” • Banks worldwide cut rates to boost world economy
Financial Analysis: GersonLehrman Group (GLG) • Sustainability through tough times: • 2006 • Revenue up 30% a year on average since 1999 • Total Revenue $189 million • 2007 • Total Revenue $233 million • 2008 • 90% of revenue from financial services, 80% inside the U.S. • 90% client renewal rates • Total Revenue goal of $284 million
Financial Analysis: Credit Suisse • The Alliance with GLG: • Thought to generate $100 million in global commissions • Save Credit Suisse up to $5 million on own consulting agreements
Financial Analysis: CS against competitors http://finance.yahoo.com/ http://www.reuters.com/