Finance Simulation: Blackstone/Celanese

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:
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:
  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
Topics Covered:
  1. Leveraged Buyouts
  2. Mergers and Acquisitions
  3. Negotiations
  4. Financial Valuation
  5. Due Diligence
To familiarized and practice the assignment before it begins please use the free demo at the following link:

Written report:

The submission is to be typed and should not exceed five-pages, summarizing your strategies and the experiences that your team have learnt. That is to report:
  • Team assignment strategies
  • Team management strategies
  • Summarizes your mistake(s) and how you over come them
  • Lessons learnt from the simulation
  • If you have to redo the assignment again what would you do differently 
The page format: single space, Times New Roman with font 12, and a margin of one inch on each side

Please attach your final company's financial reports in an appendix.

You are expected to have run a grammar and spelling-checking program through the document before it is submitted.  If you do not comply with these basic rules you will receive a penalized mark.

Due Date: 

The project report is due at 12p.m. on TBA. Assignments are expected to submit in both hard and soft copy to the School of Business Administration’s Faculty Assistant or the lecturer at the Faculty Office.
  • Late work will be penalized at the rate of 10 percentage points per week day. 
  • Students must keep copies of all work submitted.

Team registration:

Edgar Dale’s Cone of Experience: