MAKING HIS MARK IN M&A
The story is well-known in Wall Street circles:
In 1984, faced with precisely five minutes to convince a First
Boston Corp. executive that the firm should hire him, Raymond
J. McGuire said calmly: "Harvard College, Harvard Business
School and Harvard Law School pride themselves on having the cream
of the crop of students. I pride myself on being the film off
the top of the cream."
"Any other reasons we should hire you?"
asked the disarmingly unfazed recruiter. Without missing a beat,
McGuire responded: "In the heat of battle, it's better to
have me on your side than against you, because I'm going to win."
McGuire got the job.
Just seven years later, in December 1991, Ray
McGuire became the first black managing director at Wasserstein
Perella & Co. Inc. Of the 10 mergers and acquisitions specialists
reviewed for promotion at that time, McGuire, 35, is the only
one who advanced, reportedly making him one of only two African-Americans
to rise to the top of the highly lucrative and complex M&A
field.
His ability to advise clients in acquiring, divesting
from, or investing in companies has been tested time and again.
One need only to follow his track record from his days as an associate
at First Boston when M&A was just taking eft, through his
tenure at Wasserstein Perella. When top officers, Bruce Wasserstein
and Joseph R. Perella, left First Boston in 1988 to start their
own boutique, McGuire, along with a select group of other Wasserstein
Perella managing directors, left First Boston to join them.
Since its founding, Wasserstein Perella has completed
approximately $200 billion in M&A transactions, ranking it
among the world's top five advisers. In the last three years,
it has advised on six of the 10 largest transactions executed.
McGuire has been significantly involved in many of the firm's
most significant deals. For example, he helped to advise GeorgiaPacific
Corp. in its $5.1 billion hostile takeover of Maine-based Great
Northern Nekoosa Corp. in 1990. The transaction resulted in the
largest paper and forest products company in the world.
McGuire also represented New York-based Colgate-Palmolive
Co. in its 1991 acquisition of Cleveland-based Murphy-Phoenix
Co., producer of Murphy's Oil Soap. The deal amount was undisclosed,
but The WallStreet Journal valued the sale at just over $100 million.
In addition to histransactional work, McGuire
oversees Wasserstein Perella's recruiting and supervises the firm's
60 or so associates and analysts, regularly evaluating their performance
and troubleshooting where needed. His role as employee mediator
is as close as he gets to realizing his childhood dream of becoming
a Perry Mason.
McGuire, who also attended the University of Nice,
France, while on a Rotary Fellowship, recalls the story of his
fateful First Boston interview with zest and without apology.
"In this business," says the former high school basketball
captain--who attended the exclusive Hotchkiss School on a partial
scholarship--"you have to be on your game. There's very little
margin for error. Some people call it arrogance, cockiness; I'm
not that. I just believe in me."
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