Articles

What if Brasil Played India - in Corporate Governance?

by Kevin McDonald on February 10th, 2011

Imagine it's a sunny afternoon on July of 2016 in Rio de Janeiro, and you have a perfect view of the playing field from your seat at Maracana. The Brasilian team is warming up for the final match toward the gold medal of the XXXI Olympiad. But the opponent coming onto the field is not Spain, Germany, the Netherlands, or Argentina. Due to an error by the International Olympic Committee, the team is from ... India!

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Why is Individual Compensation a Secret in Brazil?

by Kevin McDonald on January 27th, 2011

All over the world, owners of companies want to know how much their CEOs and directors make, especially since corporate scandals and failures over the past two years have involved high fees to insiders. In the US and many other countries, the details of compensation are readily available. Not so in Brazil. Why not?

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What Will Stop the Bovespa?

by Kevin McDonald on December 2nd, 2010

Will the Bovespa keep rising at the current pace? It's up 20% in the past five months. What's going to stop it? Most people reply: it will depend on the economy. Or corporate profits. Or interest rates. Or global liquidity. Or demand from China.

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Brazil Internet Investments: Lessons Learned

by Kevin McDonald on March 3rd, 2001

Compared with the expectations of two years ago, the Internet in Brazil might seem to be a commercial failure. Indeed, dozens of dot-coms have closed their doors, and investors have lost a lot of money. Many of the remaining Internet companies have yet to generate a profit. One year after the fall of the NASDAQ, these companies are still struggling to raise the capital they need to survive. A new economy is not replacing the old one. Instead, old economy companies are adapting to the Internet.

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Reynolds Converts Threat Into Opportunity

by Kevin McDonald on May 19th, 1994

Most Western businesspeople assume that Russian companies won't compete in the West for another 15 to 20 years. Russia and its newly independent neighbors will need at least that long to build a market economy, generate entrepreneurial spirit, and train a generation of young managers. But there's at least one important exception to that forecast: in the raw materials sector, Russian companies are already competitive.

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Russian Raw Materials: Converting Threat into Opportunity

by Kevin McDonald on May 1st, 1994

Most Western businesspeople are betting that companies in the former Soviet Union will not become a threat to the West for another 15-20 years. According to this widespread view, Russia and its newly independent neighbors will need decades to establish a market economy, to instill an entrepreneurial spirit, and to train a generation of young managers.

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Techniques of Successful Equity Investing in Eastern Europe

by Kevin McDonald on September 1st, 1993

In June 1990, the Hungarian-American Enterprise Fund bought a sleepy printing plant in Budapest, Hungary. It hired a new chief financial officer, increased wages by 50%, reduced payroll to 300 people from 900, arranged debt financing for $6 million of new equipment, and created a mandate to pursue the high-growth market for export-quality, printed packaging. The results: within a year, sales rose 22% to $39 million; exports rose more than 500% to nearly $15 million; and the market value of the business approximately doubled, to $30 million.

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How to Manage a Venture in Eastern Europe

by Kevin McDonald on May 10th, 1993

Most Western businesspeople believe that privatization is the key to salvaging state-owned enterprises in Eastern Europe. According to the conventional wisdom, privatization invariably improves corporate governance, management, and performance. My experience with dozens of companies in Eastern Europe, mostly in Poland, has convinced me that this is an incomplete truth and, like a runway that is a bit too short, extremely dangerous.

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Why Privatization Is Not Enough

by Kevin McDonald on May 1st, 1993

Most Western businesspeople believe that privatization is the key to salvaging state-owned enterprises in Eastern Europe and the former Soviet Union. According to this conventional wisdom, privatization invariably improves corporate governance, management, and performance. My experience with dozens of Eastern European companies, most of them in Poland, has convinced me that this is an incomplete truth and therefore, like a runway that is just a bit too short, extremely dangerous.

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Poland's Biggest Factory Struggles to Survive

by Kevin McDonald on May 8th, 1990

WARSAW - Henryk Poddany is anxiously gazing out his window at a parking lot full of tractors. Where, he wonders, can he sell 1,500 tractors quickly? Mr. Poddany (pronounced Poh-DAH-nee) is the Managing Director of the Foreign Trade Office for Ursus, the Polish tractor company based in Warsaw. He knows that understanding the market in the next few months will be critical to his company's future. Ursus is trying to stay afloat in new waters.

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Principals

Kevin McDonald
25 years of experience in investment banking, consulting, private equity, and international business
Michael Lehner
In the high technology field for 30 years, as an operating manager, consultant, venture capitalist, and investment banker
Copyright © 2010 McDonald-Lehner. All Rights Reserved.