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Rather than perform duediligence , I simply took this as a sign that selling was the right decision. Moreover, the stock price did not stay sustainably above $48 per share until 2007. However, 2007 was the year that Booking stock finally began to take off.
Back in 2007 when Kim began what would turn into a 16-year stint heading up the fund’s Asian private equity business (she was the firm’s first hire outside Toronto when the portfolio was just C$4.4 Our job is duediligence, and for deals that require a level of speed that makes the duediligence difficult, well, we won’t do the deal.
Within about 90 days, it became apparent to me that we had not done sufficient reversed duediligence on our acquirer. This idea of reversed duediligence is like they're asking a bunch of questions trying to figure out who you are and where you fit with cultures like all those things. We managed to still sign and close.
Blackstone told us "extensive pre-investment duediligence showed PSSI had industry-leading hiring compliance." But it seems, that diligence failed to find what was obvious to investigators watching a shift change in a parking lot. In 2007, Taylor won the $1.5M Mr. Taylor’s previous honors include the 2015 John W.
But there’s also a lot of, like at Wittel, you know, I was at Wachtel in 2005 to 2007, so really near the peak of a big merger’s boom. 00:33:08 Who, who is advising him to waive duediligence? Normally the hostile deals sort of end up going quasi friendly and like you get to do some duediligence.
And what I think distinguishes us at Wellington is that we’re able to utilize our public market investors in the duediligence process in helping us assess. And so we, we kind of stay very stealth when we’re in the duediligence process. 00:45:53 [Speaker Changed] So where does your deal flow come from?
There were financial experiments where the borrower hadn’t been through duediligence. So we’ve, we purchased, and most of the homes were purchased one at a time, independent duediligence, independent construction management to get the home back up to current market standards. The LTV was very high.
Somehow no one in duediligence ever asked them about any of this. And not being able to tell them or show them makes it harder for them to do duediligence to understand how it may have behaved. And by and by the agreement, I wasn’t, I wasn’t even supposed to be in the equation at all. No one knew who I was.
And as you well know, in 2007, accountants fixed what I thought was a horrendous mistake — RITHOLTZ: Right. DAMODARAN: We’re going to do our duediligence. We also tell them to do duediligence. They were older, you know, companies that were over the hill in terms of their business models.
In other words, there's not a lot of homework and there's not a lot of duediligence, there's not a lot of questions being asked of senior management and that's one of the points in the book. Another thing you brought up in the book that I hadn't quite thought that much about was the impact of cheap credit between 2007 and 2019.
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