Ron Perelman, one of the wealthiest men in America, sits down for his first ever Q&A.
Marvin R. Shanken
From the Print Edition:
Ron Perelman, Spring 95
(continued from page 14)
Shanken: How can you not pay attention to a business doing $2 billion or $3 billion?
Perelman: Because we started paying attention to other things. We were at the same time doing a series of other transactions. We had bought a bank in Texas, which required a lot of our time and attention. Over the last two years, we've gotten Revlon to the point where it's better than ever, and I am very happy with that. I am very proud of that.
Shanken: When you bought Revlon, what was its cash flow? What is its cash flow today?
Perelman: Cash flow was about $15 million in 1984, 1994 cash flow was around $200 million and 1995 significantly higher than that. There's been a very good job done in the business of Revlon.
Shanken: Is there any one company that you get more involved in the day-to-day managing, or at this point are you pretty much an overseer of all the businesses?
Perelman: I divide my time close to equally among them all. Every month we have in-depth management meetings on the operations of each of the units. Depending on the company, I'll either get daily or weekly or, in some cases, monthly numbers. But today the businesses have been in our portfolio long enough that we've got a shorthand with operating management of those companies. They know what to be sensitive to and what surprises they want to alert me to, so that they're not surprises. They understand their businesses very well.
Shanken: It's fair to say, at this point, that each business, is run by a...
Perelman: Each of our businesses is run by an independent decentralized manager.
Shanken: With a strong leader.
Perelman: With a very strong manager.
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