1. MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith

2. Executive Summary Financial Analysis The market crash time line
Gerson Lehrman
Credit Suisse & GLG alliance
Credit Suisse and competitors
External Analysis
A Look at Each Company
The Deal
Competitive Advantage
Internal Analysis

3. 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

4. Financial Analysis: Gerson Lehrman 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

5. 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

6. Financial Analysis: CS against competitors
Company
PE ratio
Debt-to-Equity
Return on Equity
Credit Suisse
9.82
1,118.53
10.57
Morgan Stanley
39.71
703.71
7.42
Goldman Sachs
13.31
672.86
10.37
Industry
42.9
292.51
6.41
Company
Total Revenue: 2010
Total Revenue: 2009
Credit Suisse
54,048,000
50,003,000
Morgan Stanley
31,622,000
23,434,000
Goldman Sachs
39,161,000
45,173,000

7. Internal Analysis: Credit Suisse
Leading Global Financial Services Firm
300 Equity Research Analysts
Company & Business Model Research
Published Reports with Investment Advice
Peers Relationship Database
Supply Chain - Ecology

8. Internal Analysis: GLG
Largest Expert Network
200 Executives, Physicians, Scientists, Engineers, etc.
Transaction Driver, not Relationship Based
Experts managed projects through GLG
6 Vertical Sectors, 2 Horizontal

9. Internal Analysis: The Deal
Goldman Sachs Hudson Street Initiative
Credit Suisse
Improved Information flow
Access to Unique Resources
Cost Savings
200,000 expert network
Differentiate & Grow
GLG
Growth
Added Experts
Strengthen position as Comprehensive Marketplace Expertise
Match clients with experts better

10. Internal Analysis: Competitive Advantage
First Movers
Branding
Comprehensive Marketplace
Experts

11. Recommendations
Keep doing what they are doing!