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By Bryan Burrough & John Helyar

The Wildest Deal in Wall Street History

Barbarians at the Gate is the thrilling true story of the 1988 leveraged buyout (LBO) of RJR Nabisco—a takeover so large and dramatic that it defined a decade. This isn’t just a business book—it’s a corporate soap opera filled with greed, ego, backroom deals, and financial engineering.

Burrough and Helyar pull back the curtain on the excesses of the 1980s and reveal how private equity reshaped American capitalism—often at a steep cost.

Top 10 Key Lessons from Barbarians at the Gate

1. Greed Can Override Common Sense

The battle for RJR wasn’t driven by strategy—it was fueled by ego, power plays, and the intoxicating rush of money.

2. Leverage Is a Double-Edged Sword

LBOs can create enormous wealth—but also enormous risk. The use of borrowed money amplifies both gain and loss.

3. Corporate Politics Are Brutal

Boardrooms can be as cutthroat as battlefields. Backstabbing, manipulation, and alliances determine who wins.

4. Investment Bankers Often Pull the Strings

Advisors like KKR, Morgan Stanley, and First Boston wielded enormous influence—sometimes more than the executives themselves.

5. Public Companies Can Be Sitting Ducks

If undervalued, bloated, or poorly managed, public firms become easy targets for private raiders.

6. Culture Is Often Ignored in Big Deals

RJR’s tobacco and food business cultures clashed. But in the rush for financial engineering, human dynamics were ignored.

7. Vanity Is Expensive

CEO Ross Johnson’s desire to keep control ultimately cost him—and his shareholders—dearly.

8. Deals Are Driven by People, Not Just Numbers

Personalities, grudges, and ambition shape financial outcomes more than spreadsheets do.

9. Excess Doesn’t Equal Success

Corporate jets, lavish perks, and billion-dollar price tags made headlines—but not long-term value.

10. History Repeats When We Forget Its Lessons

Many themes from RJR reappeared in the 2008 crash. Understanding the 1980s can help us decode modern financial cycles.