September 2003
Case
HBS Case Collection

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

By: Mihir A. Desai, Paolo Notarnicola and Mark Veblen

Format:Print
| Pages:17

Abstract

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 custserv@hbsp.harvard.edu.

Keywords

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

Citation

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.

About The Author

Mihir A. Desai

Finance

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