As a huge consumer of capital, I have always made it a mission to understand lenders’ motivations and the methodologies behind their credit structure… - Sam Zell

I’ve always valued long-term relationships, but John Hsieh, the former head of Itel’s container leasing business, taught me that you simply cannot succeed in-country without them. Hsieh had extensive international experience and contacts. He took me under his wing, and we traveled the world meeting Itel’s customers and suppliers — from a cocktail party in Rotterdam with British and German customers to a dinner in Hong Kong with a Chinese shipping company. The deep relationships he had with his customers enlightened me. I learned that the extreme degree to which you rely on strong personal relationships is perhaps the single biggest difference between doing business in the emerging markets and the U.S.

Redundancies are much more predictable and transparent than theoretical opportunities to add value. My focus is always on the downside. Overly optimistic assumptions lead to the graveyard of corporate acquisitions.

Like many other going-private LBOs, our deal involved significant leverage. But ours had one big difference. If we succeeded in growing Tribune, many people would benefit, including, first and foremost, the employees. The ESOP would enable employees to participate in the upside. The majority of any increase in the value of the company’s stock would accrue to the ESOP and ultimately to employees through their ESOP accounts. So employees would be highly motivated to succeed. That sounded great to me. Everyone would have skin in the game. Including me. It would be the single largest personal investment in my career.