In this LBO Model tutorial, we walk through Silver Lake's $24 billion leveraged buyout of Dell and explain the tasks you might have to complete if you were to analyze this deal as part of a case study in a private equity interview.
By http://www.mergersandinquisitions.com/ "Break Into Investment Banking or Private Equity, The Easy Way"
Among other topics, we cover typical LBO case study questions to expect, why this particular deal was so unusual, and how to begin gathering data from industry reports, equity research, Dell's filings and investor presentations, and other sources.
Then, we delve into how the transaction assumptions are set up, why the calculation for debt and equity is somewhat unusual, and how to factor in Michael Dell's equity rollover and cash contribution and the company's own excess cash usage.
Finally, we conclude with a discussion of the Sources & Uses schedule and how that works, plus a description of the different types of debt used in the transaction.
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