Summarise the transaction with special emphasis on capital structure.

Case: Hilton Hotels (2007): $26 billion If the timing was bad for Energy Future Holdings, it appeared equally so, if not worse in the case of Hilton Hotels.

When a consortium that included the Blackstone Group, Bear Stearns and Lehman Brothers acquired the famous chain for $26 billion in 2007, the world was just about to enter the biggest real estate depression of all time. And yet, understanding the long-term nature of an investment can often be key to its success.

After the recession, travel picked up, a Hilton hotel was still a Hilton hotel. Blackstone finally cashed in in 2018, making several billion dollars on the deal that everyone had assumed was a bust. Who is the acquiring company? (Hilton hotels or BLACKSTONE group o Describe their business model & industry. o What is the nature of its industry? Is it a volatile industry? How is this related to its capital structure? Who is the target company? o Describe their business model & industry. o What is the nature of its industry? Is it a volatile industry? How is this related to its capital structure? How is the capital structure of the acquiring company affected by the transaction? Was the transaction successful? How did the acquiring company perform the in subsequent years after the transaction? Finally, summarize and reflect: o Why was this transaction successful/unsuccessful? o What are the key takeaways? o What would you do differently, if applicable?