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How did you get to where you are today? What is your story? What incidents and experiences shaped your career path?

Summarized By: Jeff Musk on Tue Nov 10 2020
so I have been almost my entire career. There was a brief start prior to that which I'm sure we'll get to later with one of the questions in the investment banking business. Azan investment banker not as a broker, so not sort of calling on people toe, manage their money or sell them a stock or things like that. But in one that helps arrange various types of transactions. Um, and one of the other distinguishing parts of my career on I've been at this now for a long time for more than two decades, more than three decades, all right, But one of the things that distinguishes my path is that it has been with smaller what's known as regional investment banking firms. And when people use the word regional, that doesn't mean, oh, there they only do transactions or only do business in Texas or Pennsylvania or the state of Washington or something. But it usually means that they're not headquartered in New York, Boston, where most people are, uh,one of the distinguishing features is the kinds of issuers or companies that have dealt with in the whole world of business tend to be smaller. So it's not IBM or Apple Computer or American Airlines or or in such, but it's companies that generally might have revenues off. You know, uh, well, sometimes no revenues if it's in certain industries, like medical devices or revenues up to maybe a couple of $100 million U. S. So that that's one way to sort of characterize it, Um, and such and most almost all not quite of my investment banking career has been, has been with firms that arm or institutionally oriented. And what that means is that to the extent that we raise money either in the public markets or in the private markets, it tends to be dunmore with institutional investors than with retail investors on. That's not a good or bad. That's just the sort of a business choice the large firms obviously do. Both right, if you do a transaction with Merrill Lynch and do a public offering or something, institutions and individuals and such, but that's kind of been my background, so that's kind of the size of the pool, if you will. And I had to start in a different profession, which we'll get to in a few minutes. But, um so I, um I grew up sort of all around the United States. That was what they call a government grap. So my dad didn't work for the Army or the military, but he worked for the U. S. Government. So I wound up living 89 places but found myself in for the first four years of college in California in Southern California. And I got a bachelor of science in accounting of all things from a what's now called Loyola Marymount University. And from that I spent a little less than three years with what was then one of the world's largest public accounting firms. Now it's part of KPMG was called Pete Mark Mitchell Beck. Um and, uh, those were very steep learning curves. It's a very specific skill set, but you learn a lot. Um, I like to say that I really hated that job, but I do it again if I had the chance to do it. Uh, from that, I wanted to do a little bit of a reset in terms of my trajectory and left Peat Marwick or KPMG now and went Thio graduate school. And I got a master's in business and finance and a specialty, uh, for what's now called the Anderson School of Management. Back then, it was just the U. C L. A, which is also in Los Angeles. U C L A Graduate School of Management. Andi. When I worked with KPMG, I was up north in the city of San Francisco. So Onda, from there after that, I got into this regional, if you will, investment banking business. And I've been with four different firms since then. Uh, actually, 4.5. It's a long story that isn't relevant for this recording, but, uh, that's that's kind of how we got from there, all the way to hear if you

What responsibilities and decisions does one handle in a job like yours? What are the top three priorities? What are weekly work hours like?

Summarized By: Jeff Musk on Tue Nov 10 2020
you know, this is, I mean, much like public accounting. Okay, PNG. But especially in investment banking, it's It's one of the ultimate service businesses, and it's also distinguished compared to other professions like public accounting or auditing or like the law that you very, very seldom, if ever, earned revenue by building by the hour. So it's it's usually, um, milestone based, its success based, its completion based, I mean, there are There are certain retainers that air paid, but none of that's based on time. So your time is really unpredictable because it's filled up by whatever it takes to get the job done. And sometimes you get a little lucky and something goes pretty smoothly and easily. Usually it doesn't right because you're there to solve problems. I mean, if it was really easy, they wouldn't hire people like us right on, De So some of the stories, especially for younger people, that you read about the horrendous hours on Wall Street and everything that tends to be true. Uh, you know, so an 80 hour work week for the first number of years that you start is not unusual, but it's very uneven. It's it's It's very jagged because it just depends on the volume of business and such there. There is not a lot of recurring business. There's some in my field now. You might have an existing client, and anytime that they want to raise money because there's a good relationship, they come to us. Army do that, but there's no contractual obligation to do that. Sometimes they don't need anything for. I mean, it might be a couple of years, right, or they might need three things in the next six months. So it's very it's very uneven. And it makes time management, um, one of the really biggest issues in skills. And I don't think anybody does it perfectly because it could be very sometimes Machiavellian. I mean, I had untold mentor when I first started out First few years and this I'm gonna date myself. This, uh so barely predates personal er the ubiquitous use of personal computers. So you had stacks of files there on your desk, to the side on the credenza behind you, and he said, Well, you know, what you want to do is walk into the office every day and look at those stacks and stacks of different transaction, and you want to pick out the one that you think is closest to getting done, which also means getting paid and you work on that one first and then you work on the others. And so it could be a bit of a heartless, sometimes rank ordering of things. But that's how this business works. Let me. So what responsibilities and decisions does one handle? Well, that's that's a slightly different way. Uh, there are really three broad areas and, um, in any firm like mine and And this includes if there's a brokerage forest or if there's not a retail brokerage force or or, you know, public offering brokerage force. But you know, one is generating business, uh, the other is transacting the business. And then there's a third area, uh, which is usually segregated, and that's the one that nobody likes to talk about or which is compliance. It's a very it's a very and somewhat appropriately so heavily regulated business, right, and so everybody likes to sort of make fun and not get along with their compliance people. But that's a very important part. But the two parts that involved me or and It doesn't start day one, but it's generating business. And then it's putting the appropriate team together to transact the business in some larger firms. Sometimes those functions are somewhat segregated in smaller firms where I've been associated with and by the way, smaller, it's anywhere from maybe 30 or 40 to 150 bodies. Actual people, uh, it's much more integrated than that, right? But but But there's a transition that happens, and every firm like ours and by the way, every big consulting firm and every big law firm and every big public accounting firm a little less extent there, where there's a transition from working on somebody else's transactions and business, destroying the generate your own and leading in. You're the one that leads that team and put that team together, and that's usually not a sort of a stark, You know, one day you're doing this the next day you're doing that. But it's a transition that if you wanna be long lived in the business, everybody has to make eso is one of the top three priorities. I I mean, the first two were easy one. It's the ability to generate business. The second one is getting it done right, and then the third is getting it done. The appropriate fashion. It's a very regulated business, and there is liability. Um, you know, it's a very litigious field. Um, anytime somebody loses a lot of money, it's never their fault. It's always somebody else's fault. And one of the first people to point a finger at outside of the company that messed up is people like us, right? So care and what you're doing is also very important. But that's probably how an answer those questions.

What are major challenges and pain points in a job like yours? What approaches are effective in overcoming them? Discussing examples will help students learn better.

Summarized By: Jeff Musk on Tue Nov 10 2020
So let's kind of break down the the A couple of major areas that we talked about a minute ago. So let's talk about business generation, which comes a little later on, obviously, in your career. Okay, Um and it really, uh, especially at the regional level. It really gets back to proper deal selection. I mean, so maybe just a quick and a bit of a sort of a global anecdote. Um, when I first got out of college and I worked for for Peat Marwick or KPMG, you're an auditor, right? And you have clients and you spend a lot of time out of the client site, you know, doing it. And it's a very computational, intense business and things you have to do with all the files and everything else. Um, and you need a lot of interaction with an information from your client from the companies it Nobody likes you, right, because nobody likes to have an auditor around. So it's always a bit of, you know, having the right personality, and, you know, not browbeating people because that never works. But, you know, being. But so when you get out of my business that I'm in now it's almost the opposite, because everybody, uh, everybody wants to raise money. Everybody wants to go by this or by that, or make their stock price higher or something. Right? So everybody wants to be your friend because they think you could do something for them, whereas auditing it's just the pain they have to endure. Um, but that gets back to the transaction selection, right? Because it's very important to select transactions because again, we don't bill by the hour, right? Nobody in this industry does. So you have to pick transactions that are going to get done and they're going to close. And it can be easy to fall in love with the particular company you've been nurturing a long, long and trying to get to sign is a client. And you Finally, something comes up and they do it and you're excited. Um, and it may or may not be the best ideas. So one of the ways that that is handled is even for smaller firms like ours. They have committees. They're called commitment committees or something similar to that. And so you have tow put together a presentation, sometimes maybe not so little presentation and go in front of them and say, Listen, here's what this company does here is that the people are like Here is the work we've done to date on. But this is this is either where we're gonna raise the money. We're raising money. So we think this is the urban to do it in. Uh, if it's a merger and acquisition transaction, you know that's it. If it's an academic transaction like a fairness opinion or solvency opinion, then you talk about the risks and rewards. So that's a really important tool, because it's very easy to fall in love with the people you've been nurturing and kind of helping along. Right? And you they're almost like your Children, right? You're very proud of them, and sometimes you get a little too emotionally involved. So that's one of the major challenges. Is that proper selection of transactions? Onda pain points are you know, somebody had a joke once they said, you know, it's I mean, investment banking is great because you're in a client business. Except for the clients. Ah,kinship with people. You deal with it at the company who are almost always the very senior people. It's the head of finance. It's the CEO. A lot of times is the chief operating officer. That's generally the level you deal that if your reason money for Apple Computer, you don't do that. But for middle market companies, it's the people that founded the company. You're running or do things, and it's usually a fairly intense environment because you're racing to get a transaction done. Originally, financing done so so making sure that flow of communication is right and everybody on the same page. Everybody is saying the same thing. You have to create a common narrative. All those things are very important. And, um, I, uh, I was asked back a few years after I graduated from U. C. L. A. Thio, given example of something I've done for for one of their classes, right? And the the and the professor, at some point during the course of it, said, You know, for most of these jobs, like what you do or consulting or a little less people think that, you know, if you so back then we at Hewlett Packard. 12 c calculators, which may be nothing to anybody that's watching this. But look it up on the Internet, right? You can see what everybody had one, all right? And there are financial calculators. And so we sort of left U c l a thinking, while we can compute the NPV of anything with this. And we're the smartest people around. Well, sure, but But what this professor said was most people don't realize in the end all these jobs or sales jobs, right to keep advancing through the organization and to be successful. And there are There are obviously some exceptions to this where you might have a really specific product specialist. But by and large, you have to make that transition from being technically expert to being able to sell and being able to convince people to come and work with you and to take them on. So I think that

What tools (software programs, frameworks, models, algorithms, languages) are typically used in a role like yours?

Summarized By: Jeff Musk on Tue Nov 10 2020
um so let's separate again. Sort of the smaller regional firms like mine and then the large firms. All right, So if if if you're working with Merrill Lynch or JPMorgan Chase and or, you know Carlyle Group right, which is a bit of an investment bank itself these days as well as private equity, Um uh, they do a lot of trading on. Did they have usually some very specific secret sauce algorithms that help them trade and such? That's never really been part of what I've done. So if you're talking about things that are done regionally with sort of middle market or smaller companies, uh, that's not part of what you do. It's really having your access to data. And again, I'm old enough to know. But when I first got in the business, the big firms, the Merrill Lynch's at the time and, oh, most of these forms have gone that were around that Shearson American Express and Drexel Burnham Lambert. So they're all gone. But they had armies of young people, and they would literally transcribe SEC documents into you know what are now called spreadsheets. They were sort of like manual spreadsheets, right, But they had enough overhead capability that they had all they had all the good information. But just about what I started is when you started to see some of the initial online database companies start in our business, where it almost seemed like magic. You could sit with your PC on your desk with its big, giant monitor everything else and you could dial up, you know, uh, sort of a two thirds completed spreadsheet that compared 12 public trans companies and all the multiples were done for you, and it looks really nice and print it out. Almost all of that has been consolidated down by Standard and Poor's. And there's ah, uh, I'm sure because I think Carnegie Mellon's part of this as well as the University of Utah, right, I believe it is my understanding. So I almost guarantee, How did I know specifically that they have access to Standard and Poor's capital like you? And over the years they just kept buying all these niche databases. And so, in terms of company information, um, uh, it's almost the one stop shop, Uh, and they charge for it. It's several $1000 a month, such just as a quick aside on the trading side. That's Bloomberg right, which is where Michael Bloomberg failed presidential came from. Um, they charge a tremendous amount of money, and they have. And for anybody that's watching this, that has been through some theory of finance classes with some of the esoteric stuff. It's all in there and all the stuff you're grinding out that so tough to do. You could tap a few buttons and get it done right on dear, constantly staying on top of it, constantly updating it. But it's so proprietary that a number of the trading desk based terminals and so really what they are They have fingerprint identification for specific trader because, quite frankly, you know, we have Bloomberg of some of the shops I was at and after trading hours, especially here in the West Coast. Uh, I'm in Los Angeles, serious. So after after one o'clock in the afternoon, all the traders would be gone in 15 minutes. I go in and get all my stuff done with Bloomberg. Well, I couldn't do that because Bloomberg woke up and said, but that's how important that data is. That's the reason I tell that story but outside of that, quite frankly, it's just the Microsoft office suite. I mean, it's it's it's nothing, really. For what I do, it's having that company reported data public, certainly in private, and and there is one source that scoops all that stuff up, and that s and P capital like you.

What are the job titles of people who someone in your role routinely works with, within and outside of the organization? What approaches are effective in working with them?

Summarized By: Jeff Musk on Tue Nov 10 2020
sure Well again, middle market. So I'll stick there were usually dealing with. So we're dealing almost always directly with the principles. So it's the sea. It's the CEO. It's the CFO. It's the CEO. And then, you know, sometimes some people below that right. If you're working with Merrill Lynch and you're raising a traunch of money for I don't know, I'm not sure about the computer and raise money. But I guess in a couple of debt deals recently, because interest rates were so low, you're probably dealing with somebody in the Treasury office because Apple Computer sells itself. Middle market companies don't do that. You know $100 million in revenue, 50,000,200. You've got to go out and sell that story, And people really want to see investors or potential partners really want to see to keep people that are doing that. So on part of that, So part of the trick in doing that, I suppose, is learning to get along with people of various backgrounds, right? And you meet a lot of different personalities by definition, people that either found companies or running companies that size that Avery entrepreneurial. Um, they're usually pretty intense. I mean, that's just part of the job description on a larger company. You can be a little more laissez faire and do things because the company that runs itself, not these small ones. So it's it's I can't really give you three specific techniques, but it's really part of it's being a good listener. Um, and people are in my business, tend to usually not be too shy and retiring. And, you know, you can probably tell already I'd like to hear myself talk. Uh, the ability to turn that off is important and listen. And then occasionally, uh, hopefully not too much the ability Thio disagree somewhat firmly with your clients say, Listen, I know you're saying that makes sense. Um, here's why. We think that's not the proper direction. And here's the implications, and some of those conversations could be can be difficult, but that's that's just part of it. And then part of it is just But you know, there are always ups and downs in getting transactions done, and so part of it is helping them through the down parts and, you know, not letting them get too discouraged and such, but its's. It just takes time. It takes time

How would you describe your management style? How has it evolved over the years? Can you tell about experiences or books that influenced your management style?

Summarized By: Jeff Musk on Tue Nov 10 2020
people. In my end of the business in investment banking that our investment bankers again, we tend to not be too shy, retiring everything. We could do anything. Now. The fact is, we there's a lot. There's a hell of a lot of things we can't do an enormous amount of things. And one of them is often running a company. The track record of investment bankers jumping ship. And you know, being CEOs or CEOs is not very good. I mean, clearly there's been a handful of success stories, but by and large it's tough. And and part of that is the culture at, and I think a couple of questions down, we'll probably talk more about this. But culture and investment banking firm is pretty streamlined. And somewhere in the next few questions, maybe I'll jump and talk about that for a second. You know, one of the key performance indicators, and when you look at, it's usually pretty damn simple. It's money. Um, you know, which is obviously not something you can you can carry over to. And, you know, I have to call it a real business. I mean, a company actually makes something they make a product, right? I mean, I joke and say I have had a real job, you know, since I was working, summers in college were actually made something right. I spent time talking and moving things around financial markets and convincing people to do stuff, right? Um, So So it's the real key I have found over the years. And I've been in different. You know, Pantsil about organizations is setting the performance metrics up as it relates to compensation. I mean, people will by and large, they will do whatever you guide them to compensation. Waas. Um And if you don't do it correctly, it can cause some bad results. Right? And sometimes you do have to intervene, um, and settle, uh, internal disputes. One of the one of my mentors told me that. You know, Bob, this is a really simple business. Okay, so there's the conference room over there, and there's this big pot sitting right on top of the conference table, right in the middle. Okay, Half of our job is going out there and doing trying and getting money and put it in that pot. The other half of our job is figuring out who puts her hand into that pot and takes the money out that we just put in. And while that sounds, you know, little sarcastic and simple, that's pretty close. That's pretty clo, and so you really gotta have a system that is clear on the front end. It has to be clear on the front end. And I and that said, I think we have all fallen victim at some point to not being quite as clear as we should have. We put the team together for that transaction, and it comes down to the end and somebody really gets her nose pushed out of joint sometimes. Rightly so. So that's it. It sounds simple to say on this video. It's harder to do in real life. So and especially because there's a lot of big egos. There's a lot of big egos in this business, right? I mean, if you don't love to hear yourself talk and think you know everything you know, she probably go find something else to doone of the books that I liked a lot, and it's by one of my favorite authors. Eyes Moneyball, right, which I think most people on this call will know what that is. It's the Michael Lewis book about the Oakland A's and you know how they didn't have any money and they but so I'm a big baseball fan. It is fascinating, but what the book was really about was not really about baseball. It was about how to take something that everybody thinks they know. They all areas. We know baseball. We know how this works. They looked at it in a completely different way, a completely different way to great success. We're now, quite frankly, most teams copy what they started to do. But but that's and again, you know, it seemed pretty easy when you were reading the book, but people forget how hard that ISS so that Z E hasn't actually read the book and not the movie, because the movie is okay, too. But it really goes into a lot of that and how that was very challenging for very challenging. But they had no choice. They didn't look at in a different way they were gonna continue to fail and fail and fail so that they didn't. And that's what I'd encourage anybody watching this to do, trying to look at something that everybody thinks they know and try to do it differently.

How do you manage conflicts within and across teams? How do you promote trust, openness and a healthy work culture? Sharing stories will greatly help.

Summarized By: Jeff Musk on Tue Nov 10 2020
sure. Well, I think we touched on that a minute ago. Um, in this business, it all gets back to compensation. Um, it has to be meticulously handled. So, for example, um, there is one model on, and I'm not sure one is better than the other. Okay, there's one model where it goes. Okay, Campbell, here's a salary of X right now, you know, it's probably enoughto hopefully cover your expenses. Right? Uh, you know, so meaning your big mortgage and everything else, Right? Okay, But then at the end of the year, or maybe twice a year, depending it's usually at the end, uh, for your department. Or if it's a small firm, the whole firm, but whatever it is, right, well, how much money got made. And then, you know, half of the profits or some percent of the profits get split up and put back to the people in that area. And there's a predetermined formula about who gets what. Sometimes the form it is not so predetermined, right? Because people say, Well, it's a combination of that and how I think you did. And so it gets pretty nuanced. But that's one part and the advantage of that is, um That encourages a bit more of, ah, one for all. All for one, um, mentality right? Because if if you know Bill or Sally over there, I should be happy they got their transaction done because that puts more money in the whole pot. And I get part of that when it comes out. So as long as I'm kind of pulling my weight, you know, I'll benefit from the vice versa. Or if something really comes up, put the phone on if something really comes up. And, uh, boy, I gotta go to Chicago tomorrow, and I can't cover this meeting in San Francisco. Well, you know, building know much about this or Sally done, but it didn't cover it for me and just kind of get done. So that's one mall. The other models in probably 50 50 on the street by department, Affirmed is more individually oriented. So often there is no salary, but there is a sort of a debit in a draw. So they said, Okay, we'll pay a blank $1000 a month. But, you know, we're keeping track of that right, And then we keep track of what you did in the business you brought in and how those transactions turned out. Then you got to filter some of that down to the team. And there's a formula, right? But quite frankly, if if if Andre over here had a lousy year or a great year, that doesn't affect you, Andi. And that's a different philosophy. Um, there are pros and cons to that that can be more motivating. Certainly. Personally, I gotta get off my really gonna do this because nobody is gonna carry me right, which is typical and my business more. Um, but it sometimes it could discourage that. Hey, you know, can you carry that thing in San Francisco form? Because I got to go to Chicago tomorrow and the person going, Yeah. What's in this for me? I'm exaggerating a bit, but I've been in those specific situations. Um, they both worked. Um, some people are a bit more suited than others. You know, the first mile It gets a bit more subjective sometimes and how the pot gets split up and that could be good. That could be horrible for, you know, employee relations. Um, that depends how it's done. The other one, it's more. It's more clear cut path, toe making money, but you get teamwork issues, so

How can one get better recognition of work from one's boss and higher management? What mistakes should one avoid? Stories or examples will be quite helpful.

Summarized By: Jeff Musk on Tue Nov 10 2020
recognition. There's no real magic formula there. I think you know, one is, um, in the beginning, for the first number of years, when you're on the production end, if you will, uh, details really important. And I'm going to sound like an old guy here, and I guess I am a bit of an old guy, so that's what it is. But, um, back in the old days when things were better, uh, standard and poor capital like you, you know, wasn't the ubiquitous standard for everything. And so you had s so it took longer. That was bad. But you had to go into the damn documents and do it yourself and put stuff in. And so that really much more encouraged accuracy because you were right down in the numbers, right? Um, you know, now I mean, I could take a break here for three minutes and I could sign on the capital like you and I could I could come back with this fancy looking spreadsheet. Uh, you know, just kind of whatever you told me you wanted, I will bang here is I'm not sure I understand it as well. Well, actually, I'm much I know I would not understand it as well. It's not that I'm not sure on dso paying attention to the detail and understanding the numbers, because, ah, lot of what we do is storytelling, especially when you're raising equity. I mean, the debt markets are a bit more clinical, but when you're raising ownership, capital or equity capital for somebody you're telling a story, especially middle market here is white. You're gonna make money if you buy the stock. Why? Because the company is going to do better. And but it does better. It's gonna be bigger than the stock price will go up. I mean that in the short term, eventually, right. That's a story that is a narrative behind that. But that's driven by the details in the numbers. And so you do see people in this business, especially now you go online so easily and get stuff. You've got to be detail oriented and it could be a real pain. And I'll come and often that means you're kind of working on this thing at nine o'clock at night. It's just the way it is, Um, but but but that gets that gets management's attention or your boss's attention because he probably doesn't have time anymore to go through all that detail with everything. Because he's managing five clients. I just make that number up, but it's close right at a time, right? And so making your boss look good in a meeting in front of us. Hey, you know what? Did you talk about this or, you know, I'll speak up, if you don't mind. Right? Um, that's important. So that the biggest mistake, I think, would be not being detail oriented. You've got to be, You've got to be. And, um, there are big penalties if you're not. I mean, it's you know, look, we've all gone to meetings at some point, you know, with a big fat pitchbook, the PowerPoint and everything else and the clients going through it. And there's a couple of steaks and clients always find it. It's just sort of some sort of rule of nature, right? They have 1/6 sense on. There's nothing worse than being in a meeting. And the guy goes, Well, this isn't right, right? And so then I thought, Well, geez, are these the right folks to help us here because, you know, they didn't get That's what I would say. That's what I would say. Do

What indicators are used to track performance in a job like yours? Think of the indicators such as key performance indicators (KPIs), objectives & key results (OKRs), or so on.

Summarized By: Jeff Musk on Tue Nov 10 2020
we talked about this. It's different. Um um uh, by the time that you're responsible for revenue production, that's it. That I mean that zits not that sophisticated in our business. But again, my business is different because, you know, if you think about it, right, it's that it's that analogy of that part in the conference room. Put the money in the pot. Somebody takes the money out of the pot. That's it. It's not like I make a product where Well, you know, I'm a great product manager. What does that mean? Right, So, um, you know, and and four, the younger folks that are starting out. Um and this is not scientific here, but it's it's do the work. No good details. So at the end of the year, let's say, or the end of the half year, whatever it is, you don't sit down with me or some other superior and they go, Well, uh, I had a pretty good year, I guess. But, boy, I mean, I could remember three or four times and I was sitting in a meeting and, you know, this thing was wrong and the client got I'm embarrassed. That's not very quantitative. Okay, But that Israel, that's how it works. Now, listen, If I was managing Merrill Lynch with Anna, like, you know, 3000 bankers a little more sophisticated, all right? But that's not that's not who I worked with.

What skills and qualities do you look for while hiring? What kind of questions do you typically ask from candidates?

Summarized By: Jeff Musk on Tue Nov 10 2020
So the qualities or it z simple to say it's hard to measure. Um, it's technical ability. Right then. You know, I kind of joked about we all came out of u C. L. A. With our little Hewlett Packard. 12 c calculators calculate the present value of anything, but it's having that basic knowledge. Okay, um, now if you're talking about somebody who's on a trading desk with, you know, that's doing high volume trading, that's a whole different issue, right? But I'm talking about banking. Um, it's having the basic financial skills. I will tell you. Public accounting help a lot. That helped a lot because that's the language of business. I mean, it really helped a lot but having those skills, um, having a sense of affability, if you will. Or people skills, right? I mean, and that's not important Day one, but it gets important pretty quick. Uh, on that you you I need to have a sense that you get along with people and that at some point I mean that they want you can help convince them of a certain course of action that you can, you know, talk to them and they'll say Yeah, that sounds well thought out and smart. And I think I should really give that a lot of consideration or even do it because of that. That's and that's hard to gauge. It is one of the differences between public accounting, investment banking, even at the regional level, is in public accounting. And I had small clients and, you know, huge clients, right? About three years ago. Um, you're clearly not dealing with the CEO of the C F. I mean, you're dealing with, like, you know, the head of accounting for their least container division or something, right? You know, just on their find people, right? But they're not thinking strategically and this sort of thing. In this business, you generally are especially middle market. You're dealing with people that think strategically and and it's very important. So that's some That's what And look, I mean, quite frankly, uh, you know, the kind of questions I would ask. I mean, outside of some technicals, here's what I don't ask, you know, You know, what do you think? You know, the S and P s forward price earnings ratio is gonna be especially, you know, with the U. S. elections now pretty much settled. And e. I mean, it's gonna go. What? I might ask that, but that's not that important, you know, Um, so a quick story, Uh, when I was at U C l A, uh and that's a two year program. It's a master's program. And so Boston Consulting Group. So I think most of your people would know on this video, Actually, for one of the very first time I came to u c l A to recruit, and I was, you know, I was I was convinced I knew just about everything back then. I was, you know, really self important. And eso I signed up and they agreed to see me, right? You know, um, so we sit down in the interview, and by the way, I did. I mean, I basically what? Or with BCG did right. But I didn't do any homework, which was again really a foolish idea. Always, Always, always do your homework for an interview. Always don't be done like I was. So I walk in there, you know, and I'm expecting, you know, higher income. Great. Anything else? You know, Bob, eso I say something like the like, you know, what about the Dodgers game last night or something, Right? It's a local baseball team here, and, uh, I expected, you know, one of those kind of what kind of a guy interviews not even close back then. I think they still do this. They only had challenge interviews, so they had a case study, and they said, Yeah, okay, so we don't care about sports. So imagine you have any lays out. I don't know what it was some like, you know, I think was a magazine, you know, whatever. Like in South Africa, you know, both just right into it, right? You know, um, that's their style, right? E didn't get this summer job, by the way, but but But the point is being able to convince the interviewer that at some point you would be able to command their respect of these people they have to deal with because you never go out in the field. They're gonna be people you know are running $100 company. A couple of yeah, that's important, right? They've got great life experience and everything else. And there's a stereotype that doesn't wear well on freshly minted MBAs. And I'm sure most people are watching this video Have heard that, right, You know that. I mean, I've been in these things and they go, Oh, great. Here. Come, like string or fresh faced MBA from Harvard and God knows where. Or Carnegie Mellon University of Utah, And they're gonna tell me just how to run my business, right? They don't wanna hear that stuff now. They might need to hear it, but they don't want to hear it. So that's it's a long answer to your question, but that's what's important to communicate the person you're interviewing with and, you know, and it doesn't mean acting like a know it all like I did in the old days because, you know, they're working didn't work a certain time, so

Can you discuss career accomplishment(s) that you feel good about? Please discuss the problem context, your solution, and the impact you made.

Summarized By: Jeff Musk on Tue Nov 10 2020
You know, in my business, it really gets back Thio specific transactions, right? I mean, you think about it on a transaction like transaction basis. Um, part of it is, um, yeah. Sometimes it depends what the underlying company does for a living, right? Uh, and by the way, I should back up just real quick. And this is not in response to this question, but I think important to say there are, especially in middle market firms. There are two different philosophies, right? And or maybe 2.5 philosophies from the career path. One is, um, eventually be an industry specialist, which most people will gravitate to. Uh, if you work for a big firm like Merrill Lynch, Raymond James, I'm going to come in transition with Raymond James right now. Uh, they'll be okay. You know what, Bob? You're only doing medical devices, and there's our medical device group that, and that's you. And you learn all about medical devices. Right now, The problem is, you know nothing about transportation everything out. Right. But that's, um uh, at regional firms, it tends to sort of fall into it often tends to self select right. And I've got a few specialties, and I don't wanna sort of bore the class with us, but the classes with this but because I worked on things that were interesting and I liked it, and I want to do mawr, and I leverage that existing client to meet more people in in the industry. So I've got a handful of verticals and I'm pretty good at, um, so back to this question, you know, just sort of two categories. One is what's a riel difficult problem that you solved. And that's what a transaction is usually right? There's a company. It needs money. It needs to sell itself. It wants to go buy something, you know, So I might need money and it. Right? So you're you're solving a problem. They have, because I can't do it on their own, right? And there's some academic things that are a little less or common, but, um, eso you know, uh I mean, over the years, I mean, I spent and the guys in this video will relate to this. I think most of the women won't know about it, but I spent the better part of 10 years as, um uh, the financial advisor and really sort of their de facto corporate development officer and kind of have CFO for a company called Bosley Medical. And that would mean anything to you. But for the guys that, you know, watch anything on late night TV and the Internet. It's the world's largest, um, surgical hair transplantation practice based here in the States. But they and I was involved initially in a very difficult, um, transaction, where they're required by the largest wait maker in the world, which is based in Tokyo, was at that time publicly traded. Uh, and the company is a lot bigger than you think it is. I'll skip because it's confidential, but, uh, it's quite a big company. And there were lots of, um, interpersonal issues because my principal relationship there was the CEO, not the founder, but close to being a founder. And he had really grown the company from, quite frankly, a practice Dr Bosley had in Beverly Hills, California, to this National international company. Andre was Dr Bosley himself, um, who has passed away, by the way. God rest his soul. So I can say this without incurring anybody's IRB. But hey was in the company's media presentation, One of the most engaging and grandfather Li. Like, uh, people you meet. It was great on video with patients. He was wonderful. And outside of that, he was one of the most awful human being who ever met in your whole life. Um, just incredibly, definitely along with and so my relationship, the CEO spend half his time Ballon doctor Bosnian and making sure the company s So I got involved in all that, right? And that's a lot more than figure out what the numbers are and everything else and such. Right. Um and then I spent the after the acquisition Spent the next nine years being sort of their ex officio. I have other duties at the firm, right? Um uh, doing a lot of things forming that such, um that was fascinating. It was just fascinating. Um, uh, you know, and I am. It's typical that, uh, you get you read transactions. Done. His little Lucite cube getting it's got something funny on that. Well, I was getting too many of them. So finally, after I one last movie, I got rid of all the three of them, and one of them is the the Bosley transaction right, which is great. It's still flowers, Remember, so and then, Um, well, anyway, so that's that's what you tend to remember. It's things like that where it was difficulty, and it's usually not difficulty because you can't figure out the NPV of something. That's not why it's difficult. It's difficult because you have to bring different people on either side together and, you know, make them all fit right and and and probably the one thing that I've never done it. If I had to go back and I think we talked at some point earlier about, you know, books or things like this, Um, I never had any formal negotiation training, and there's a lot of people to do that now, right? Uh, that's not the worst idea, I think. And if I had to do it again, you know, they kind of had learned on the fly or watching people. And of course, people have different styles and everything else. But that's why what most of it is, it's you never have people that that initially meet at the same spot up front. So you've always got to find a way to bring those people together, and it's tough and, you know you get some. There's a big personalities

What responsibilities and decisions did you handle? What were the top three priorities and pain points? What strategies were effective in dealing with challenges?

Based on experience at: Managing Director Investment Banking, BousteadSecurities, LLC
Summarized By: Jeff Musk on Tue Nov 10 2020
I think we've covered a lot of this, you know? Look, I mean, Number one is, um, by the way, So talk about titles for a second? Um uh, yeah, yeah, but right. But just, um because he said, Well, you know, as a managing director, what about this and that? So here's our titles work in my business, and it's a bit like a commercial bank. There's a lot of great inflation. All right, Um, hopefully there's not at CMU or at the University of Utah, but there might be, but eso pretty queer, even in a big shop. After three or four years, almost everybody's a vice president, Okay. And then there could be, like, senior vice president and this and that and then going back about a couple of decades, I guess, uh, people thought I'd be cool. And it sounds really European and merchant banker ish to start calling the senior people managing directors, and it just it didn't mean anything, but just it just it's more of a European title. And, uh, so there's a lot of managing directors now, too. But basically, if you have imagine director title, almost anyrevenue generation, and then it's putting a team together to get it done correctly. But, you know, so the pain points are selling your in the firm services and the pain points are getting done. What you just told right getting done. So it's but But it's it's, it's It's very similar. It's fairly similar, right? You know, it's now. If I had gone from a trading desk, the banking or vice versa, that's a lot different. But generally the industry vertical might change things like this, but it's not so.

What college programs did you attend and what were their best parts? How did each of your college programs prepare you for your career?

Summarized By: Jeff Musk on Tue Nov 10 2020
I have Ah, four year degree from Loyola Marymount University that's now called in accounting, uh, and that that was an absolute prerequisite to go into public accounting. I mean, without an accounting degree, you can't go in there. And then I did pass the C p A exam, and I am still a c p A. But it's what they call no longer in public practice because I don't keep up with the continuing education. And that's been cheese decades, uh, in such, But that was really important. I think I mentioned previously a horrible job, and the hours are unbelievable. I mean, worse than investment banking, which is pretty bad. Um, but what I learned and how I learned to look at financial statements and then have some experience and how they actually put together eyes invaluable. And I find that that skill set is missing from, you know, a number of my colleagues, uh, banking. So it's some. And then I I left after three years and wanted to try to find a way to change my vector, if you will, when you know which was hard, because out of public accounting well, you could be a control over this. You know that That you know. Okay, that's kind of more of the same stuff. So the U C l A program, I'm sure. Just like Carnegie Mellon. And I'm sure, just like University of Utah. Um uh, it provided a great opportunity, and not just for investment banking. I didn't go there thinking I wanna be an investment banker and do this. I just said I want to try to have an opportunity to take a breath, meet some great people, which I did I mean easily. Half of the of the graduate programs that people you meet in the faculty of meat. I mean, they're all different. We got a guy who was a general in the Israeli army, for Christ sakes. And we had people that were pop engineers in this, and there were only, I think four c p. A s in the whole program. About 100. Some people, right? So, um, but, um, uh, that's was great for me because it let me really take a breath and looked at a couple different avenues, and I, you know, chose the one that I, you know, sort of on now, but

What three life lessons have you learned over your career? If any, please also discuss your experiences facing adversity, or trying something unusual.

Summarized By: Jeff Musk on Tue Nov 10 2020
one, and this will sound trite, but it's not in a way, um, one is, um, financial markets go up, financial markets go down. And that sounds like I'm making a you know, what kind of a half past joked or have a big joke, but, um ah, it's things are never as good as they seem and the world's never gonna end. Look, I mean, at some point in 1000 years of probably 90 A stock market, right. But, um, you know, I started in 1987. I have now been through a number of market crashes. And within 1987 transaction transaction of crash hit, I thought it was the end of the world, just the end of the world. Um, just a quick anecdote. So I was actually in San Diego, which is about a two hour drive from Los Angeles, Uh, and what's known as an all hands meeting for a public offering of convertible bonds? And I was in charge of the meeting and I was young. I only been the business a few years, right, So it's kind of big deal, you know, And so you get, like the company and the accountants and both sets of lawyers for the company and for us and everything else. And about every. It was in the conference room about big law for down there and about every hour, some lawyer come in his hair, be sticking straight. You won't believe how the markets down. Oh, my God. You know something like So what? My next move here. And for whatever reason, I said, Let's just keep working. Okay? So we did. We work till about six at night or seven at night and for summary. And then I drove home a couple hours right on, and I gave a lift to one of the senior partner of the law firm we engaged. It was a bit of a big personality himself, and he spent the whole time thinking about how well, you know this is not gonna hurt their law firm because they do a lot of entertainment work. And so when the Great Depression came, you know, the movie studios did really well, and I have listened to all the way home on my life, flashing before my eyes, right? Well, obviously, things recovered, right, And it's the same thing. Um, you know I went through, You know, the dot com one point. Oh, right where you had this insane stuff happening. You know, these crazy companies raising all kinds of ridiculous money, right? That didn't. So what you learn is you've got to be able to sort of learn the ups and downs right on bats, actually, probably bit of a life lesson as well, I think, right. I mean, it's just and part of what comes out of that in terms of investing, not necessarily what I do for a living is it's not a bad strategy to kind of be contrary. You know, you can read a lot of things and you know, Graham and Dodd and things. Sure, the students of our kind of heard about, But, um, being going with the herd is one strategy, and that works for some people. But, um uh, it could be very difficult. And with few exceptions, most people don't know how to sell. And I'll put myself in that same category. Um, there's just something that for a number of people and again, I'm one of them. It goes against the grain and they let emotions get in the way we live, I've invested in this stock or just whatever it's really doing. Well, you should sell a darn thing, right, You know, and maybe goes up a little more. Okay, But But you know, anything over there? It's something you got to think about, right? And and so that's That's probably the biggest sort of lessons I've learned is you got to give things the common sense test when I was in. Um, so I think when this was okay, so in the eighties Yeah, I'm dating myself. Um, uh, that's when, uh, when Japan was just going gangbusters, right? And, you know, there was books like Clear Easy, which written by, by the way, a U C l A professor. But Bill O. J was a great guy about the ascendancy of Japan. And so, at some point, somebody eso whatever the Florida University is, it's in Gainesville. I don't know. It was the University of Florida, whoever waas anyway. But some finance professor does some half baked calculation that says that the land under the Imperial Palace in Tokyo which, by the way, I've been to I spent a lot of time in Tokyo for my bicycling uh, and it's really nice. And it's big that that was worth more than a state of Florida, and people believed it. Right? Um and, you know, of course, a couple years later, right? Hindsight, everything crashes. But, um, you've got to give things a common sense test either way, right? Um, you know, And so now Well, okay, look, I'm gonna be political, but so Kobe 19 is going to destroy the world's economy, and we're all gonna go back to, you know, living in caves. That's probably not gonna happen, right? Although there's people that say that eso that common sense test is really important and it gets hard to do because nobody else around you is jumping up and down or or there wringing their hands. One of the other right common sense is really important. And take a step back and just and just look at it that way

What starting job (after internship) would you recommend to students who hope to grow professionally like you? What other parting advice, dos, and don'ts would you give?

Summarized By: Jeff Musk on Tue Nov 10 2020
sure. Um, my personal philosophy to take one is, um, learn how to do start out by learning how to do something. And that sounds a little trite as well. But but so that's a I would meet people in college or in the graduate pretty well. I want to be in management, You know, I wanna make big picture decisions. I wanna I wanna run things. Well, okay. How do you know how to do that? Well, because I'm going to these classes, and I read this text, you know, all you know, And I got a big personality, and I think it really smart. Okay, great. But the people that I have seen that have done the best are they started out with a particular skill. They were an account. There were a lawyer. They were an engineer. But there was something where You know what? I do something specific that's got real value. And somebody's gonna hire me for this. Now, as you go on, you could broaden that out, right? But but the people that I see that struggled the most just they want to skip this step of knowing how to do something and just go to the step of I'm just gonna dispense judgment. I'm just gonna make big decisions. And not most people aren't that throw the higher for that, To be honest, know how to do something and that could be accounting. Gonna be banking. Alright. I mean to be a lot of things, but it might be a certain marketing skill set. It might be product. Learn how to do that first. And if you're diligence and smart and work hard, you could broaden yourself out. That's my biggest advice. And I would tell that and I told you a lot of people over the years, some lessons, some didn't, but, you know, tacos.