Blackstone Private Equity Finance

The Mount Everest Leadership and Teamwork Simulation is one of a series of simulations Forio has developed in partnership with Harvard Business School Publishing.

In late summer 2003, The Blackstone Group LP was contemplating whether to launch a tender offer for Celanese AG's common shares as part of a friendly takeover. The transaction, if successful, would constitute the largest European public-to-private transaction in history.

Users play the role of either Celanese or Blackstone and conduct due diligence, establish deal terms, respond to bids and counter-bids, while balancing interests of other stakeholders.

The simulation provides various valuation methods including capital cash flow and equity cash flow. Students learn about leveraged buyout valuation models models, how to structure and finances private equity deals, and the importance of due diligence, as well as deal negotiations.