Valuing a Cross-Border Lbo: Bidding on the Yell Group
Posted: 18 Aug 2006
Date Written: 2006
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 cash cow 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.
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