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M&A central Although it offers other traditional I-banking services such as debt and equity underwriting and investment management, Wasserstein Perella is known primarily as an M&A firm. In recent years, the firm has advised on major deals like the $25 billion UBS and Swiss Bank Corporation merger, which created the world's second-largest bank; the joint acquisition of Conrail by CSX and Norfolk Southern for $11 billion, and the acquisition of Capstar Broadcasting by Chancellor Media, which will create the largest radio broadcasting company in the U.S. Other prominent recent deals include representing GeoCities in its $4.8 billion acquisition by Yahoo! (announced in January 1999), insurance company SunAmerica in its $18 billion acuisition by American Internatinal Group (AIG) (announced in August 1998), and Wal-Mart in its $10.9 billion acquisition of British supermarket chain Asda (announced in June 1999). In the Asda deal, Wasserstein client Wal-Mart outbid Kingfisher, which was represented by Wal-Mart's longtime I-bank, Goldman Sachs. Fast beginnings The firm was co-founded in 1988 by I-banking whiz Bruce Wasserstein (whose sister is Pulitzer Prize-winning playwright Wendy Wasserstein). Wasserstein, who enrolled in Harvard Law School at age 19 (eventually receiving both JD and MBA degrees from Harvard), left First Boston in 1988 with Joseph Perella. Wasserstein had been co-head of investment banking at First Boston. The bankers' reputations in the I-banking world served them well. Within six months of its founding, Wasserstein Perella had inked an alliance with Japanese powerhouse Nomura Securities that called for Nomura to pay $100 million for a 20 percent stake in the firm - thus valuing it at $500 million. The firm maintains its strategic alliance with Nomura The firm was ranked in the top five for M&A activity in the late 80s. However, it dropped a bit in the rankings in the early 90s, as it concentrated on hostile takeovers (and developed a reputation for arrogance), before rebounding in the past few years to the top of the business. As it returned to the top of the league tables, Wasserstein began again being courted by other firms. In 1997, the firm talked seriously with fellow M&A star Lazard, Freres & Co. about a possible merger. In spring 1999, the firm was reportedly negotiated with Schroder & Co., the U.S. investment banking arm of U.K. oldie Schroders plc, concerning another potential partnership, and even a potential acquisition of Wasserstein by Schroders. The raider The firm has thrived on splashy hirings of top bankers from competitors. For example, the firm hired away Kenneth Tuchman, the former Lehman Brothers co-head of M&A in 1997. Tuchman joined the firm as vice chairman. Another of the firm's star bankers is president Fred Seegal. One big name that has left the firm is Joseph Perella - after working with Bruce Wasserstein for 16 years, including on legendary deals like Philip Morris' $13 billion acquisition of Kraft and the $25 billion takeover of RJR Nabisco by Kohlberg Kravis Roberts, the name founder left in the early 1990s. He now heads investment banking at Morgan Stanley Dean Witter. The firm has also established strong equity and fixed income underwriting and research practices, and has an especially notable high-yield (junk bond) market making business through its Grantchester Securities division. But the firm's business that most often lands the firm in the papers (other than the M&A business) is its merchant banking arm. For example, the firm acquired cosmetics company Maybelline, which it sold to L'Oreal. And in 1998, the firm bought Steve Brill's American Lawyer magazine. Since that acquisition, Wasserstein has invested in popular online site Salon.com (an investment announced in April 1999), and has poured $32 million into independent record company Red Ant.
Wasserstein Perella posts a schedule of its on-campus recruiting visits (which at some schools includes a talk by Bruce Wasserstein) and interviewing schedule on its web site, located at www.wassersteinperella.com. At on-campus school visits, the firm reportedly prefers to conduct two-on-one interviews. The candidate then makes a visit to the New York office. For analysts, the interviews last "all morning, with a lunch afterward." Candidates should know that "we get back to them very shortly." More than other banks, Wasserstein Perella reportedly recruits candidates with legal backgrounds, as legal training comes in very handy for M&A work. "There's a fair push to get either laterals [from law firms] or people at the top law schools," reports one insider. Bruce Wasserstein is reportedly "actually closer to [Harvard] Law School" than he is to Harvard Business School. In part because Wasserstein also has ties to ultra-prestigious law firm Cravath, Swaine & Moore, "Wasserstein Perella actually has a lot of Cravath people." Wasserstein Perella offers a "limited" number of 12-week summer analyst and summer associate positions. "They"ll only hire a few summer associates, maybe four" reports one insider. These summer hires are far from guaranteed a full-time spot, insiders say: "It really depends on the quality of the summer associates - some may get offers, some may not." Our contacts give advice on what Wasserstein is looking for in its applicants. "It obviously helps to know about the recent deals and that sort of stuff," reports one insider, but more importantly, "you definitely want to have someone who knows what they're getting into. I don't think its advisable to say I'm looking at all the bulge-bracket firms - plus Wasserstein. You want to see people who are very focused."
Sweatshop reputation Wasserstein Perella, like other M&A shops, is known for working its bankers hard, but insiders report that the workload is better characterized by periods of intense work with some lulls. "The nature of M&A is more cyclical than anything. Sometimes, you could be working from 4 to 5 in the morning fairly constantly," reports one Wasserstein insider. "But other times, there may not be anything to do." Another insider agrees: "For all the long hours, much of the day is spent waiting for work to trickle down." Still, candidates for the firm should be prepared for all-nighters. Says one insider: "They're definitely looking for people who can work the late hours, people who understand the differences between the small firm and a large firm. It's not a firm where you can sort of hide in the corner and do one small part of the deals." Poor numbers for women There are few women at Wasserstein: in a recent analyst class, there were reportedly three women as compared to 30 men. "It's almost entirely male - very, very, very undiversified," reports one insider. However, because of the firm's affiliation with Nomura Securities, the firm at least has a strong Asian presence. Reports one insider: "At all times, Nomura will have about five people in New York going through training with the firm. In Japan, we have a joint venture, where there might be one or two Wasserstein people, an associate or VP-level in one of the Nomura offices." Good training Unlike other mid-sized firms, Wasserstein Perella has a well-developed training program for new hires which lasts "about a month." The first two weeks include classes taught by an accounting professor and a finance professor. The other two weeks feature modules, M&A training, and valuation techniques. The firm will also bring in outside speakers. For example, the bank brings in a partner from famed law firm Cravath, Swaine & Moore to talk about legal issues involved in M&A. All analysts take part in the training. "Associates have the option. If they've been an analyst before at another firm before business school, sometimes they'll just sit in on speeches by Bruce Wasserstein or other senior members." Get to know the superstars As with other smaller firms, insiders at Wasserstein report that "the best thing about the firm is you work with very senior members." "What Wasserstein has done is picked up very senior members of these bulge-bracket firms," explains another contact. "They're giving them a lot more flexibility - and of course, they're getting more compensation." As for Bruce himself? "He's obviously a very, very bright guy," reports one banker who has worked with him. "He can be in a room, and he doesn't have to say a whole lot. But when he does speak, the whole room will listen to him. He's very, very good on the sell-side, no one else in that room is on the same level. He's very, very good at getting to the point quickly." Spend this much time with each other? Yeah, we're close Wasserstein insiders report that the firm is a pretty chummy place, though not a party. "People will typically eat together or watch TV in a conference room," says one former analyst. "People dress down, go to the gym for half an hour or an hour together. At night, it's a different firm, everyone knows everyone. You're very close with the analyst class." Says another insider: "It's almost always quiet. People work really hard. But the guys are just generally nice. They're friendly and jovial, but it's not a party atmosphere." Wasserstein Perella's New York headquarters are located in the same building as the Museum of Modern Art museum shop, in Midtown Manhattan. "[Wasserstein] rents offices from Deutsche Bank, and Deutsche Bank really wants to kick them out," says one insider. "But Wasserstein, he's got this thing about where he wants the office to be. There's only about six blocks that he wants, and therefore we have to stay." Dining choices in Midtown tend to be somewhat limited. "There's a cafeteria in the building, its Deutsche Bank's. Nobody's really encouraged to go there," says one insider. "Most people go out - there's a soup place across the street where lots of people go." Dress is surprisingly varied. Although during the week, insiders say, bankers at Wasserstein wear "conservative suits - there's nothing adventurous going on," on Fridays, "people wear jeans. Basically they look like college students again." A river of free liquid "All in all, the benefits outweigh the detriments," says one insider. "And we get free sodas." Although that contact isn"t necessarily talking about "benefits" in the sense of perks and HR policy, others are happy to oblige. One insider also enjoys the free liquids: "On every floor they've got a pantry. It's stocked with drinks, soda, cranberry juice, lemonade, apple juice." Reports one contact: "If you work past 8:30 at night you get a car service home, which is standard." Late nights also get bankers a free dinner, and "you get free meals for weekend work." Wasserstein also offers a "401(k) with match. The firm will even pay for your GMAT course at Kaplan."
Frances Lyman Vice President - Recruiting Wasserstein Perella & Co, Inc.1 31 West 52nd Street New York NY 10019 (212) 969-2649 (212) 969-7977
Trading;Research;Consulting
Goldman Sachs;Lazard Freres & Co.;Merrill Lynch;Morgan Stanley Dean Witter More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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