BlackStone_Celanese_Due Dilligence

BlackStone_Celanese_Due Dilligence - ±exas ” o³ers...

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Blackstone/Celanese Simulation Due Diligence
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Due Diligence Now that you have understood what drives the value of Celanese, you are in a good position to decide what items you should spend your $15m due diligence budget on. Due diligence items can be categorised as follows: Strategic : This focuses on understanding the economics of an industry. In the simulation the projected evolution of the chemicals cycle under “ Sales Growth Projections and the Chemical Cycles ” deals with this issue which drives revenue growth
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Due Diligence Financial : This category aims to project the target’s likelihood of generating cash flow, the amount of cash flow and the earnings growth. The relevant items here are: Projection of COGS as a Percentage of Sales Acetate Flake Restructuring Southern Methanol Restructuring For Blackstone “ Consolidation of Headquarters in
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Unformatted text preview: ±exas ” o³ers insight into the poten±al of SG&A reduc±on. – The ´nal item is capital expenditures Due Diligence – Legal : Lawyers are always brought in to reveal any potenTal liabiliTes for the company. ±hese could be anT-trust issues, labour laws, intellectual property, tax, liTgaTon and environmental issues. ±here are several of these issues in the simulaTon. • The Frankfurt airport landing strip problem • The asbestos liability issue • The OXO an±trust issue. – Many PE Frms have lost money on liabiliTes that were note properly addressed during due diligence Due Diligence • For Celanese teams Blackstone may request informaTon from you regarding the due diligence you have done. You should carefully decide what to share and when to share it. • You may also want to volunteer informaTon to Blackstone....
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