Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 6 pages
Data source: Published sources
Topics:
Goldman Sachs; Investment banking in Japan; Bubble economy; Deregulation; Mergers & acquisitions (M&A); Principal underwriter; Government of Japan; Conflict of interests; Financial Services Agency (FSA); Tax evasion; Financially weak companies; Economic downturn; Restructuring of business; Private equity firm; Vulture investor
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https://casecent.re/p/66416
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Abstract
Goldman Sachs, the leading investment bank in the world, entered Japan in 1969. The economic reforms initiated by the government of Japan in 1996 following the collapse of the bubble economy, helped foreign investment banks to establish themselves in the country. Goldman Sachs took the opportunity, and quickly became the leading foreign investment bank in the country. In spite of criticism from various groups in Japan for its role in some of the controversial deals, the investment bank continued with its expansion activities in the country and has been an active buyer and seller of loss-making Japanese companies. However, criticism against Goldman Sachs'' role as an investment banker was levelled from various quarters in Japan. They alleged that the investment bank was functioning more like a private-equity firm rather than as an investment bank. The case provides an insight into: (1) the investment-banking scenario in Japan; (2) the growth of Goldman Sachs in Japan; and (3) the strategies being adopted by the investment bank. The case also provides the scope to discuss whether Goldman Sachs was adopting the right strategies for growing its business in Japan.
About
Abstract
Goldman Sachs, the leading investment bank in the world, entered Japan in 1969. The economic reforms initiated by the government of Japan in 1996 following the collapse of the bubble economy, helped foreign investment banks to establish themselves in the country. Goldman Sachs took the opportunity, and quickly became the leading foreign investment bank in the country. In spite of criticism from various groups in Japan for its role in some of the controversial deals, the investment bank continued with its expansion activities in the country and has been an active buyer and seller of loss-making Japanese companies. However, criticism against Goldman Sachs'' role as an investment banker was levelled from various quarters in Japan. They alleged that the investment bank was functioning more like a private-equity firm rather than as an investment bank. The case provides an insight into: (1) the investment-banking scenario in Japan; (2) the growth of Goldman Sachs in Japan; and (3) the strategies being adopted by the investment bank. The case also provides the scope to discuss whether Goldman Sachs was adopting the right strategies for growing its business in Japan.