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Thomas weisel Case Essay

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Thomas Weisel Case

1.As a Montgomery Securities partner in mid 1997, would you argue for or against selling the firm to NationsBank? Why? Montgomery experienced great prosperity in the1990’s, its revenue leaping more than sevenfold, from $94 million in 1990 to $705 million in 1997. Most of its success came from investing in fast-growing companies. On June 30, 1997, NationsBank Corporation of Charlotte, N.C. announced that it was acquiring Montgomery for approximately $1.3 billion, believing that the combination would create one of the nations top full-service investment banks. The acquisition price was about 15 times the firm’s earnings and 13 times its book value. Before the sale of the firm to NationsBank, Weisel said, “We …show more content…

Weisel was aware that his legacy would now be not his previous accomplishments but the success or failure of TWP. Although convinced that the firm’s business plan, strategy, and team would deliver top performance. Thomas Weisel partners believed that an entrepreneurial bank could attract highly talented bankers who would become the competition against established top banks. His strategy for creating a dynamic firm that attracted the best and the brightest was to establish a “research-driven” merchant bank focused on the new economy that was transforming key growth sectors, technology, consumer and business services, media and communications, healthcare, and financial services. Weisel structured TWP around the concept of “tailwinds,” currents or vendors that, moving faster than the rest of the economy, act as agents of change and power future growth.
A niche strategy can succeed if the company finds a specialty that immediately and clearly distinguishes you from the competition, and then get really good at it. You'll have more customers or clients, you'll have an advantage over competitors, and best of all, and the company will make more money. Also, when you cater to a niche, either a specific demographic group or industry, customers believe that you understand them.

4.What advice do you have for Thomas Weisel as TWP proceeds into 2000 and beyond? Specifically, what should TWP’s competitive and growth strategies be going forward?

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