Cross border LBO discount rates for tax shield.
I am in the process of valuing a cross-border LBO. (Yell Harvard Business case).
In the case a UK fund is acquiring through an LBO two companies, one located in UK and another one in USA, the two companies will form a single entity and the debt will be beared by the holding company in UK.
I valued the unlevered stand alone companies using projected cash flows and discount rates derived by each company exposure ( beta unlevered ) to the country specific systematic risk (s&p 500 for USA and FTSE for UK) , so far no problems. I am now in the proc

Question

Cross border LBO discount rates for tax shield.
I am in the process of valuing a cross-border LBO. (Yell Harvard Business case).
In the case a UK fund is acquiring through an LBO two companies, one located in UK and another one in USA, the two companies will form a single entity and the debt will be beared by the holding company in UK.
I valued the unlevered stand alone companies using projected cash flows and discount rates derived by each company exposure ( beta unlevered ) to the country specific systematic risk (s&p 500 for USA and FTSE for UK) , so far no problems. I am now in the proc

anonymous · Answer

Hi luca.d, 
Can you include the last bit of your question? It got cut out.