Simulation | 2009

Finance Simulation: Blackstone/Celanese: No. 3712.

by Nabil N. El-Hage and Timothy A. Luehrman

Abstract

The Finance Simulation: Blackstone/Celanese is based on the landmark acquisition of Celanese AG by the Blackstone Group in 2003. Students play the role of either Celanese or Blackstone and conduct due diligence, establish deal terms, respond to bids and counter-bids, and consider interests of other stakeholders. The simulation offers chat functionality so that students can negotiate online in addition to in person. Topics covered include: various valuation methods including capital cash flow and equity cash flow methods, LBO Models, Deal Structuring/Financing, Due diligence, Mergers and Acquisitions strategy, and Negotiation.

Keywords: Bids and Bidding; Finance; Mergers and Acquisitions; Valuation; Leveraged Buyouts; Negotiation;

Citation:

El-Hage, Nabil N., and Timothy A. Luehrman. "Finance Simulation: Blackstone/Celanese: No. 3712." Simulation and Teaching Note. Watertown, MA: Harvard Business Publishing, 2009.