Tuesday, December 11, 2012

Company Founders Take Goldman to Trial Over Rotten Advice




According to Bloomberg: Jim and Janet Baker, pioneers in the field of computer speech recognition, turned to Goldman Sachs Group Inc. (GS) in late 1999 when they needed investment bankers to advise them on the sale of Dragon Systems Inc., the company they had spent 17 years building.

The Bakers, who started Dragon in their Boston-area home, had seen it grow into a company with $68 million in sales, more than 350 employees and operations in the U.S., Germany, U.K, France and Japan. They wanted to sell to a company that would let them continue to develop the technology they had spent their professional and married lives creating.

 “This was the most important business decision of our lives,” Janet Baker said in an interview in the couple’s home in West Newton, Massachusetts. “We chose Goldman because of their global reach and their reputation as the world’s most important investment bank…..”

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