and wrireulard

i need to write a report of blackstone and celanesand simulation.

I m team of blackstone

Simulation Details:

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. Blackstone needed to formulate specific terms of an offer.

The Story:

You will 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:

1.Explore different valuation methods (capital cash flow, equity cash flow) and valuation models (leveraged buyouts)

2.Investigate how to structure and finance private equity deal

3.Understand the importance of due diligence and deal negotiations

Tasks:

1.The group leader should register one account for the team - see email sent to group leaders.

2.Once you have registered, I will assign your team into either the Celanese or the Blackstone role.

3.Team members should meet and complete Round 1: after reading through the attached materials, each team completes an initial valuation of Celanese and settles on a reservation price

Your proposed offer for Celanese needs to meet the internal rate of return (IRR) of 17% required by Blackstone's Investment Committee.

The system will allow you to forecast the variables and run different scenarios to come up with a valuation.

Be careful when submitting your valuation price - once you submit it then it is the final price and you cannot change this.

4.For efficiency each pair of teams (Blackstone and the Celanese) should complete Round 2 at the same time.Team Leaders should work together to find a suitable time for this task. In Round 2: both roles conduct Due Diligence and update valuations and reservation prices, begin negotiating (via chat) and potentially agreeing to the terms of a deal.If Blackstone and Celanese don't agree on terms, the simulation ends in Round 2.

Since Celanese is a public company, starting in round 2 you will need to make a tender offer for its shares. In preparation of its bid for Celanese, Blackstone constructed a detailed financial model for the proposed transaction. A simplified version of this LBO model is available to you for your preparation with this simulation.

5.Round 3: If agreement is reached in Round 2, students move on to Round 3, which involves gaining approval for the deal terms from other stakeholders, including banks, the Blackstone Committee, and the Celanese boards.

Written report:

Write a report detailing your valuation, summarising your strategies and the experiences that your team have learnt. In the report you should critique your

valuation strategy (include details of the items you considered, the forecasts you made, the scenarios you examined etc)

approach to due diligence?

negotiating strategy?

You should also

Discuss the important of timing when completing these types of valuations and negotiations

Finally

If you did not complete a deal, what should you have done differently to achieve that goal?

If you completed a deal, do you think the outcome was favourable to your side? If so, why do you think the outcome was favourable? If not, what might you have done to make it favourable?