KEY POINTS:
In 2002 Jim Smith retired as chief executive of American phone directory business Dex.
Five years later Smith has spent his "retirement" working on 11 different private equity bids for directory businesses and is now chairman of New Zealand's Yellow Pages Group.
"I really thought a great thing
to do would be to play a lot more golf and go fishing," said Smith.
"As it turned out I really missed being involved in business and the part of my career I missed most was the involvement in the Yellow Pages."
Colorado-based Smith created a role for himself advising private equity players buying phone directory companies, beginning with the sale of Dex by US telecommunications giant Qwest.
"These private equity people are very good business people, but a part of that is knowing when to bring in industry experts," said Smith.
He has had a hand in successful bids for directories businesses in Canada and Singapore from the 11 he has advised on.
In both cases he has stayed on after the transaction, helping with the business improvements identified in the purchase process.
When Telecom put its Yellow and White Pages businesses on the block late last year, Smith was again called in by private equity bidders to assess the strength of the business.
Despite being part of an unsuccessful consortium, which he refused to name, Smith was so impressed with Yellow Pages he approached Stephen King, a partner with successful bidders CCMP.
In March, CCMP Capital Asia and Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan paid $2.24 billion for Yellow Pages.
"After they were the successful winning bidders I actually got a hold of Stephen and congratulated him and told him that I thought it was a great company and let him know that if ever [he] had a need for any assistance I'd be happy to talk with him," said Smith.
Smith had worked with CCMP on their purchase of Singapore's Yellow Pages, and he and King had both served as directors of the new board.
At that stage he didn't have his eye on the chairman's role or even a directorship, he said.
"I did tell them that I was available for any sort of consulting assistance that they wanted and that I was also interested in making some sort of investment alongside them if they felt that would be appropriate."
Smith has taken a stake which he describes as "a significant investment" in terms of his own portfolio.
Yellow Pages ticked all the boxes for Smith and he describes the directories business as one of the best he had seen.
Smith said New Zealand's business community of small and medium-sized companies is tailor-made for Yellow Pages advertising.
"These are the kinds of companies where Yellow Pages really works for them as an advertising medium."
Involvement in the due diligence process gave Smith a chance to eyeball the management team and he said it was clear the current management were doing a great job of running things.
Smith was also excited about the potential for the revamped website to push online growth as New Zealand's low broadband penetration grows to match international peers.
"Fundamentally great usage and an opportunity for the growth of the business, that's what I look for.
"I'm comforted by the fact that both of those things are present in this case and on top of that, great management that are up to the task."
Smith's first job as chairman is to sell the company's $150 billion bond offer - downsized last week from the original target of $300 billion.
Some market commentators are concerned about the high level of debt the business already carries - $1.475 billion - and effects of the squeeze on global credit markets.
Fronting up to media and market analysts this week, Smith said these concerns were overplayed given Yellow Pages stable business and growth opportunities.
Back in Denver, Smith said the 12 hour commute to his New Zealand job, which he intends making every couple of months, gave him an opportunity to swot up on the rules of rugby.
Now he is able to claim allegiance to the All Blacks he's found a local television network which is showing the Rugby World Cup live.
Which doesn't leave much time for golf and fishing.
