Case | HBS Case Collection | September 2003

Valuing a Cross-Border LBO: Bidding on the Yell Group

by Mihir A. Desai, Paolo Notarnicola and Mark Veblen


A team of private equity investors must value the leveraged buyout of a Yellow Pages business that operated in both the United States and the United Kingdom. In the process, they must wrestle with issues of how to conduct cross-border valuations and how to value a stable cashcow business along with a growth business. The case analyzes the economics and incentives of carried interest and compares different valuation methods--Capital Cash Flow and Free Cash Flow. To obtain executable spreadsheets (courseware), please contact our customer service department at

Keywords: Leveraged Buyouts; Cash Flow; Private Equity; Cross-Cultural and Cross-Border Issues; Valuation;


Desai, Mihir A., Paolo Notarnicola, and Mark Veblen. "Valuing a Cross-Border LBO: Bidding on the Yell Group." Harvard Business School Case 204-033, September 2003.