CASE HARVARD: Valuing Cross-Border LBO: Bidding on the Yell Group (375)

1. Is Yell a good leveraged buyout candidate?
2. How similar are the U.K. and U.S. businesses? Do the management projections in Exhibit 6 and Exhibit 7 make sense to you? In other words, if you were part of the Apax/Hicks Muse team, would you trust them?
3. How does Yell’s projected debt affect its valuation?
4. How does the cross-border nature of the Yell deal affect the valuation of the firm?
5. How much is Yell worth? How much would you bid?
6. If you were Apax/Hicks Muse would you do the deal?

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