• Money Machine

  • A Trailblazing American Venture in China
  • By: Weijian Shan
  • Narrated by: Tim Lounibos
  • Length: 11 hrs and 22 mins
  • 4.9 out of 5 stars (13 ratings)

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Money Machine  By  cover art

Money Machine

By: Weijian Shan
Narrated by: Tim Lounibos
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Publisher's summary

In Money Machine: A Trailblazing American Venture in China, Weijian Shan delivers a compelling account of one of the most significant deals in private equity history: the first and only foreign acquisition of control of a Chinese national bank. Money Machine is the fascinating inside story of the transaction as told by the man who led it, from the intrigues of dealmaking to the complex and uncharted process of securing control by a foreign investor of a Chinese nationwide financial institution, a feat that had never before been attempted, nor has it been repeated.

Shan also describes the astonishingly successful turnaround of the institution under the control of the American firm: the clash of cultures, the growth to strength and profitability, and ultimately, the extraordinarily profitable exit from the investment. In the process, he reveals new insights into how finance operates in China's capital system and how private equity firms can add real value to companies. Listeners will also find: a peek behind the curtain of a process usually shrouded in secrecy: private equity dealmaking and moneymaking; the complex negotiations between American private equity executives and Chinese regulators to implement a series of unprecedented changes; and the riveting details of the challenges that had to be overcome to return the bank to growth and profitability.

©2023 Weijian Shan (P)2023 Ascent Audio

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What listeners say about Money Machine

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A book worthy of of reading again

I have read the three books by Shan, all of which are in super high quality. As an investment banker since graduation, I wish I would read his books earlier and accumulate the technical skills. In this way, I wouldn’t be that afraid of lengthy transactions w large-scale financial institutions in China, nor be upset with the tedious and uncertain regulatory approvals to close the transactions. I am looking forward to reading Shan’s next book about his journey in PAG, which was founded by him since 2010.

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The Fundamental Dishonesty in the VC Business

In "Money Machine: A Trailblazing American Venture in China" by Weijian Shan, the author criticizes the inherent dishonesty among different players while he pursues a Chinese bank for his venture capital firm. These players often maneuver to circumvent their commitments. His astonishment at their lack of moral considerations underscores a deep ethical disconnect in the industry. However, Shan seems completely unaware of his own ethical lapses and how his actions frequently fail to align with his agreements, even as he critiques others. For example, despite promises to not sell the bank for five years, within less than two years, there were attempts to effectively sell it. They contorted their actions to appear compliant, but it was all a scheme. In another instance, there was a discussion about a financial structure involving a cash payment where the author worried more about how it would be perceived by regulators rather than whether it truly adhered to their commitments. The focus was on ensuring they received full value, without any concern for the ethical implications or the integrity of their word. This blatant disregard for morals and commitments is both astonishing and revealing of the industry's ethical failings.

Despite this, the book features examples of innovative strategies, such as the breakdown of claims processing into small tasks for cost efficiency and a Chinese CEO’s approach of delegating day-to-day responsibilities to focus on ideation and strategy. Shan also highlights a rare instance where a senior executive on the Chinese side changes his mind based solely on logic, showcasing the power of reasoned argumentation. "Money Machine" a must-read for those interested in business ethics and strategy.

As a side note, the book also celebrates the genius of David Bonderman, whose ability to zoom out and see the big picture is particularly impressive. For example, He viewed the difference between a 1.45 multiple and a 1.6 multiple—$25 million—as inconsequential, believing that the essence of a deal’s success lies beyond immediate financial figures.

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An intelligent and fun read

I could imagine what Mr. Shan has been through with the Chinese side. You just cannot make these things up. lol. It was the best of times; it was the worst of times.

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Detailed and easy to understand, a must read for PE practitioners

He’s a legend in the Asian PE world, his step by step account of his deal in Shenzhen Development Bank has valuable lessons for all PE practitioners , especially those interested in buyouts

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