CIC Said Backing Yum China Buyout

The video discusses the potential turnaround of Yum China as an attractive opportunity for private equity firms. It highlights the challenges of valuation, with the deal potentially exceeding $14 billion. Despite the availability of funds, valuation remains a significant hurdle. The video also addresses external uncertainties, such as investment outflow from China to the US and regulatory issues, which could impact the deal. The deal is still in preliminary stages, with private equity firms like Hill House working on it.

What is the significance of valuation in the context of the Yum China deal?

What factors should private equity houses consider when evaluating the Yum China deal?