Finance Simulation: Leveraged Buyouts and Private Equity

Blackstone/Celanese



$150 / seat

Simulation Overview

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.

The Story

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

Learning Focus

  • Explore different valuation methods (capital cash flow, equity cash flow) and valuation models (leveraged buyouts)
  • Investigate how to structure and finance private equity deals
  • Understand the importance of due diligence and deal negotiations

Topics Covered

  • Leveraged Buyouts
  • Mergers and Acquisitions
  • Negotiations
  • Financial Valuation
  • Due Diligence

See How the Simulation is Played

This simulation comes with a Teaching Guidebook for the facilitator along with 1:1 training sessions, free trials, videos and more.


This simulation is by Nabil N. El-Hage, Timothy A. Luehrman, Harvard Business School Publishing, and Forio

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