Memo for Valuing Cross-Border LBO of Yell Group Group 5: Li Xiao‚ Xia Liu‚ Minghao Gu‚ Shine Li Table of Contents 1. Purpose and Overview 2. Acquiring Yell Group Is a Good Choice for Apax and Hicks Muse 2.1 Directory Industry has enjoyed fast growth both in U.K. and U.S. 2.2 Yell Group is a good LBO candidate 2.3 Apax and Hicks Muse are experienced media investors 3. Valuation 3.1 Valuation Method 3.2 FCF of BT Yellow Pages 3.3 FCF of Yellow Book USA 3.4 Interest Tax Shield 3
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Bidding on the Yell Group 1. Introduction Yell Group consists of two businesses that are operating across countries. Yellow Page is a classified directory business in the UK‚ while Yellow Book is an independent directory business in the USA. These businesses are currently owned by British Telecom which is under pressure to reduce its heavy debt load and had been wavering for months about the future of these two Yellow Pages divisions. Apax Partner and Hick Muse are two private equity firms
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Executive summary 2 PART 1: Valuation of the Yell Group 3 LBO Potential 3 Financial structure 3 Ownership structure 4 Potential cultural differences 4 Valuation 4 PART 2 : Readings 10 Bond prices and takeovers 10 Abnormal Bond Returns 10 Impact on bond returns of different legal standards in case of cross-border acquisitions 11 Sources of financing takeovers 11 References 14 Executive summary The Yell group is consists of BT Yellow Book Yellow Pages USA and
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soul would be a hollow lifeless shadow. From the Separating White Line I glance up at the scoreboard; the clock reads 15 seconds left in the fourth quarter. My team is down by 4 points; we have to score a three-pointer and have no time-outs left. I yell out the play for a three-pointer and a two-pointer‚ now the perfectly spherical ball is put in my hands. Taking a short glance to the clock I saw time was running out. The only objects I see are two tall defensive players bearing down on me. Somehow
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Investors led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group will buy TXU Corp.‚ the largest power producer in Texas‚ for $45 billion in the biggest- ever leveraged buyout.The investors are providing $8.5 billion in cash and the rest of the deal will be debt‚ according to people familiar with the matter. The buyout firms will put up $5 billion and Goldman Sachs is investing $1.5 billion‚ Lehman Brothers Holdings Inc.‚ Citigroup Inc. and Morgan Stanley are also investing. KKR‚ run by
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Case Study Preparation Questions Valuing a Cross-Border LBO: Bidding on the Yell Group Shiyu Liu 1. Include a paragraph to summarize the case. A group of private equity investors – Apax Partner and Hick Muse are two private equity firms that are interested in buying the Yell Group. Yell Group comprises of two businesses that operated in both the United States and the United Kingdom. Yellow Pages is a classified directory business in the UK while Yellow Book is an independent directory business
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Cell Yell In this generation‚ people tend to speak their mind regardless of their surroundings. Thinking back to a few years ago‚ everything was private. Not too many people were broadcasting personal business in public settings. Nowadays when using public transportation services‚ it’s rather annoying to hear the next person’s conversation. What ever happen to keeping your conversation private? Privacy plays an important role in my life. Everything isn’t for everyone to hear‚ see‚ or understand
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After evaluating Hertz‚ we recommend that Carlyle Group purchase Hertz for at least $2.3 billion. If they want to achieve a 20% return‚ they should offer $5.2 billion. A higher offer price is recommended due to the competitive nature of the dual-track process. The dual-track process has created a rather interesting environment for potential investors. Not only are investors competing with each other‚ but if the case that a deal is not worked out then Ford has made provisions for the company to be
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In her essay‚ Triumph of the Yell‚ written in 1994‚ Deborah Tannen details the truths about public discourse in a well organized and factual manner. She makes a forceful claim that public discourse has degenerated into verbal fist-fights which are not effective in problem solving. She exemplifies her statements with facts and personal experiences. She also applies the universal intellectual standards of clarity‚ depth‚ accuracy‚ logic and fairness. With this thought provoking essay‚ Tannen exposes
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Memo To: Apax Partners and Hicks‚ Muse‚ Tate & Furst From: Subject: Valuing a Cross-Border LBO: Bidding on the Yell Group Date: April 9‚ 2014 Yell Group‚ a holding company created by British Telecom (BT)‚ has two business divisions located in two different countries: Yellow Pages business in the U.K. and Yellow Book business in the U.S. Recently‚ BT is under pressure to reduce heavy debt load through outright sale of directories
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