Publicação
Corporate finance field lab on Dell Inc.'s leveraged buyout: Dell Inc.'s pre-leveraged buyout target attractiveness, valuation, and preliminary model
| Resumo: | This case study analyses Dell's valuation, capital structure, and strategy in 2013 to assess its appropriateness for a leveraged buyout (LBO). We examined Dell's financials, including its EBITDA margin, liquidity, debt structure, and market position. The findings showed that Dell was undervalued, with strong liquidity and manageable debt, making it a strong LBO candidate. Dell's strategy of expanding into software and cloud solutions, combined with smart acquisitions, helped minimise the company's reliance on the decreasing PC market. These factors combined with its financial flexibility allowed Dell to successfully manage the LBO and foster long-term growth. |
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| Autores principais: | Mnatsakanyan, Evelina |
| Assunto: | Leveraged buyout Valuation Liquidity Debt management Capital structure Strategy Diversification Growth potential |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This case study analyses Dell's valuation, capital structure, and strategy in 2013 to assess its appropriateness for a leveraged buyout (LBO). We examined Dell's financials, including its EBITDA margin, liquidity, debt structure, and market position. The findings showed that Dell was undervalued, with strong liquidity and manageable debt, making it a strong LBO candidate. Dell's strategy of expanding into software and cloud solutions, combined with smart acquisitions, helped minimise the company's reliance on the decreasing PC market. These factors combined with its financial flexibility allowed Dell to successfully manage the LBO and foster long-term growth. |
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