Henry Lehman started his business with the small general strore in Montgomer, Newyork in 1884.After 6years his business was joined by their brothers Emanuel and Mayer and they named the business as LEHMAN BROTHERS, founded in 1850.They became broker of trading the cotton as it was the major cash crop at that time in the Alabama. EXPANSION OF BUSINESS (1860-1869) There was a civil war in 1862,which disturped the Lehman business the firm teamed up with cotton merchant named John Durr to form Lehman Durr &Co. After the end of civil war there was a rapid growth in infrastructure like road, rail tracks and etc.
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in US economy. At that time Kuhn, Loeb were the major underwriting of the financing for railroad construction. Rail road bond represented a significant advance in development of capital markets, their affordable price attracted a great number of investor and Lehman brother recognizing a trend they also themselves in and they start dealing with securities . So it was the turning point of Lehman in the area of financial advisory. IN THE YEAR 1880-1889 Now they expanded their business from financial advisory to merchant banking & they became the member of NYSE in 1887 . they went Japan &Europe globally after acquiring the seat on NYSE. FINANCIER OF EMERGING RETAILERS 1900-1909 They lend the money to emerging retailers like Roebuck &co. F.W.Woolworth co.and etc. and also it helps Lehman to cover market share. FOCUS ON CONSUMER INDUSTRIES (1920-1929) In 1920 Robert Lehman perceived dynamic changes occurring in the nation economy and focused the co. on consumer industries like retailing, airlines ,& communication. From the beginning they were the supporter of entertainment sectors. They started up venture with film studios RKO, Paramount, FOX, benefited from financing arranged by the firm. They were arranging loans between blue chip borrowers and private lenders. These loans also provide to safeguard & solid returns for lender while enabling the borrowers to raise much needed capital. FUNDING CAPITAL (1930-39) Lehman brother underwrite IPO for DUMONT the first TV manufacturer & helped fund the Radio Corporation of America known as RCA (RCA was an electronic co.) Start up financing IPO underwriting (1950-59) It was boom period for electronics business in the US economy and there were number of upcoming companies it gives the opportunity for Lehman brothers to arrange start up financing for co. like Litton industries. They also provided underwriting for industry Pioneer Digital Equipment. The firm later arranged the acquisition digital equipment by Compaq. Company like General foods, Campbell Soup& Phillip Morris went to Lehman help for finance growth necessary to satisfy borrowing demand for third product.(General food Corporation was acquired by Phillip Morris co. now Atria Group Inc. Phillip Morris is one of the world largest tobacoo corporation. Works with the leading players (1960-1979) They were having their clients in overseas also to meet their financial need they opened up new office in Paris 1960,
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